Sainsbury’s boss says UK ‘through the worst’ of weak pound - Ashdale Business Consulting

Sainsbury’s boss says UK ‘through the worst’ of weak pound

 

The boss of Sainsbury’s has said the UK is “probably through the worst” of a weaker pound fuelling food inflation.

After years of deflation, Brexit currency movements meant there had been a “little bit of food price inflation” this year, chief executive Mike Coupe told the BBC.

But he said food prices this Christmas would still be “about the same as they were two years ago”.

His comments came as the retailer reported a 9% fall in interim profits.

However, the decline was not as bad as expected and sales rose.

The UK’s second largest supermarket chain said profits came in at £251m in the 28 weeks to the 23 September, while like-for-like sales excluding fuel went up by 1.6%.

It said the fall in profits was due to price cutting, wage cost inflation and the consolidation of Argos.

Chief executive Mike Coupe said he was “very pleased with progress”.

‘Relatively limited’

The value of sterling has fallen sharply since last year’s Brexit referendum, pushing up the cost of imports.

Initially, retailers were protected against those increased costs because they buy in advance, but more recently they have felt the effects of the currency devaluation.

However, Mr Coupe said the “impact on customers had been relatively limited”.

He said the retailer was aiming to limit price rises, despite the recent pick-up in inflation.

Click here to read more (Source: BBC News)