Sainsbury’s CEO Calls For Energy Support To Halt Rising Food Bills
- 3 days ago
- 2 min read
Sainsbury’s chief executive Simon Roberts has urged the government to extend energy bill support to the food sector, warning that rising industry costs linked to the conflict in the Middle East risk pushing food prices higher.
Roberts said the most effective step ministers could take to limit further inflation would be to prevent energy costs from rising faster for growers, manufacturers, and retailers.
“The single biggest thing the government could do to keep prices down is to make sure energy prices for the industry are not rising faster,” Roberts explained.
His comments follow the Chancellor’s recent move to expand support for energy-intensive UK businesses, which he said should now be extended to food production and retail.
“Some sectors have seen those reliefs and it is now time to look at what’s possible in food [growing], manufacturing and retailing,” Roberts pointed out.
Energy remains a critical cost across the supply chain, from heating polytunnels used to grow fruit and vegetables, to fuel for distribution, and refrigeration in stores.
Roberts warned that these pressures would inevitably feed through into food prices.
Despite the challenges, Roberts said there had so far been no disruption to food availability at Sainsbury’s, supported in part by the UK entering its peak domestic growing season.
"The growing season is in full swing in the UK but that takes a lot of energy to produce,” Roberts noted.
However, he cautioned that the energy required to sustain production during this period remains significant.
“There is no doubt there’ll be pressure on inflation and pressure on food prices given that energy is the single key component on food we eat every day,” Roberts said.
Sainsbury’s has absorbed some cost increases rather than passing them fully onto shoppers, according to Roberts, as the retailer continues to prioritise value for customers facing ongoing cost of living pressures.
Food inflation is forecast to reach between 9% and 10% by the end of this year.
In March, food inflation rose by 3.7% year-on-year, up from 3.3% in February, according to the latest ONS figures.
Sainsbury’s has warned that the geopolitical situation will affect both consumer confidence and operating costs, making the outlook for the year ahead uncertain.
The supermarket reported a 1.1% rise in underlying annual profits to £1.03bn for the year to 28 February, supported by improvements in its financial services arm.
Sainsbury’s reported its highest market share in a decade and continues to invest in automation, including increased use of robotics in warehouses and the development of an AI centre of excellence to support operations and customer service.
The retailer has also invested in store upgrades, digital improvements, and a 5% pay increase for staff.
Looking ahead, Sainsbury’s plans to open 10 new supermarkets and 20 convenience stores this year, following 10 supermarket and 33 convenience openings in the previous year.
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