Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Supermarket boss says Britons buying more frozen food as inflation worsens

Supermarket boss says Britons buying more frozen food as inflation worsens

Sainsbury’s CEO Simon Roberts said shoppers were visiting stores more often but buying less on each trip as after UK’s inflation reached new highs.

Cash-strapped Britons are buying more cheap frozen food to help cut waste and cope with “unprecedented” soaring living costs, the boss of supermarket group Sainsbury’s said.

Chief Executive Simon Roberts said shoppers were “watching every penny and every pound”, visiting stores more often but buying less on each trip, and using technology to monitor their spending to avoid “till shock” at the checkout.

“In many ways there is no playbook for what we’re dealing with at the moment, these are unprecedented circumstances,” said Roberts, a 30-year veteran of the UK retail sector who has run Britain’s second-biggest supermarket since 2020.

Britain’s cost-of-living crisis is worsening, with pessimism among households hitting record levels.

Wages are struggling to keep pace with inflation that reached an over 40-year high of 9.1 per cent in May and is heading for double digits. Food inflation is predicted to hit 15 per cent this summer and 20 per cent early next year, according to some forecasts.

“There is some evidence of customers shopping [more] to own brand and also areas like frozen are increasing,” Roberts said, on a tour of a Sainsbury’s store in Richmond, south west London. “People are looking at making sure that they don’t incur any waste.”

He said people were buying “for now” only, and making sure they do not buy products they may not use.

Market researcher NielsenIQ said on Tuesday UK sales of frozen poultry jumped 12 per cent year-on-year in the four weeks to June 18.

Frozen food became popular in Britain in the 1970s and with prices often lower than fresh goods, it can return to fashion in times of economic hardship.

Sainsbury’s CEO Simon Roberts.


Roberts said Sainsbury’s had recently revamped its frozen category.

Market leader Tesco said earlier this month that Britons were trading down to cheaper products.

Sainsbury’s – like Tesco, No 3 Asda and No 4 Morrisons – has learned valuable lessons from the 2008 financial crisis when higher prices enabled German-owned discounters Aldi and Lidl to eat into their market share.

“The lessons learned are – you’ve got to be absolutely on it on value,” said Roberts.

“When customers are concerned and anxious about conditions out there they’ve got to be confident in your availability, in your service, in your delivery and you’ve got to make sure that you innovate when you need to,” he said.

“We’ve moved at speed to respond on all those things.”

Britons protest against the increasing cost of living in the country.


Roberts said the public’s perception of Sainsbury’s value had improved after it matched the prices of 250, mainly fresh, items to those at Aldi, while another scheme covering 1,800, mainly branded, products holds prices for at least eight weeks. Its Nectar Prices scheme also provides personalised offers.

“The fundamental here is that we have brought prices down on the products customers buy most of,” he said.

Sainsbury’s, which has also revived its “Feed Your Family for a Fiver” campaign that was first launched in 2008, says it is winning market share in terms of volume sold and that its overall prices are rising 1-2 per cent less than the broader market.

To stay competitive, Sainsbury’s is spending 500 million pounds over the two years to March 2023 to keep a lid on prices, but that comes at a cost.

In April, it joined Tesco in warning of a drop in profit this year and its shares are down 23 per cent so far in 2022.

Its guidance takes account of the major hike in energy bills that is due to arrive in October.

“Customers are going to be watching even more acutely how much they can afford to spend in the autumn and so we’ve got to be prepared for that,” said Roberts.

He urged the government to do more to help, noting Sainsbury’s pays almost as much tax on its properties as it makes in operating profit.

“If business rate reform was accelerated, that would take [out] further cost that we could reinvest in prices,” he said.

Sainsbury’s updates on first quarter trading next Tuesday.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
World’s Longest Direct Flight China Eastern to Launch 29-Hour Shanghai–Buenos Aires Direct Flight via Auckland in December
New OpenAI Study Finds Majority of ChatGPT Use Is Personal, Not Professional
The conservative right spreads westward: a huge achievement for 'Alternative for Germany' in local elections
Pope Leo Warns of Societal Crisis Over Mega-CEO Pay, Citing Tesla’s Proposed Trillion-Dollar Package
Poland Green-Lights NATO Deployment in Response to Major Russian Drone Incursion
U.S. and China Agree on Framework to Shift TikTok to American Ownership
Le Pen Tightens the Pressure on Macron as France Edges Toward Political Breakdown
Czech Republic signs €1.34 billion contract for Leopard 2A8 main battle tanks with delivery from 2028
Penske Media Sues Google Over “AI Overviews,” Claiming It Uses Journalism Without Consent and Destroys Traffic
Indian Student Engineers Propose “Project REBIRTH” to Protect Aircraft from Crashes Using AI, Airbags and Smart Materials
One in Three Europeans Now Uses TikTok, According to the Chinese Tech Giant
Could AI Nursing Robots Help Healthcare Staffing Shortages?
NATO Deploys ‘Eastern Sentry’ After Russian Drones Violate Polish Airspace
The New Life of Novak Djokovic
German police raid AfD lawmaker’s offices in inquiry over Chinese payments
Volkswagen launches aggressive strategy to fend off Chinese challenge in Europe’s EV market
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
×