Sainsbury’s chief executive Mike Coupe has said major food suppliers to UK supermarkets should take the hit from a devalued sterling, rather than passing on any price increases to UK retailers and shoppers.Since the Brexit vote in June, the sterling has been extremely volatile and weakened to above £0.90 against the euro at one point. The UK currency has also hit 30-year lows against the US dollar. This sharp depreciation in the sterling has forced a number of large food brand owners, such as Unilever, Pepsico and Birds Eye, to demand price increases for their products on UK retail shelves.
Sainsbury’s chief executive Mike Coupe has said major food suppliers to UK supermarkets should take the hit from a devalued sterling, rather than passing on any price increases to UK retailers and shoppers.
Since the Brexit vote in June, the sterling has been extremely volatile and weakened to above £0.90 against the euro at one point. The UK currency has also hit 30-year lows against the US dollar. This sharp depreciation in the sterling has forced a number of large food brand owners, such as Unilever, Pepsico and Birds Eye, to demand price increases for their products on UK retail shelves.
However, UK retailers have been in a bitter price war for the last two years and are extremely reluctant to increase food prices to averse UK shoppers.
“Our job is to mitigate any cost price pressures through our supply chain, either with our suppliers or looking at our own business,” said Coupe. The Sainsbury’s chief added that he didn’t “necessarily agree” there has to be food price inflation in the UK.
Coupe made the comments after Sainsbury’s announced a 10% decline in pre-tax profits to £277m for the 28 weeks to the end of September. Total group sales increased by 1.8% to £12.6bn, which was driven by increased sales volumes. Coupe said Sainsbury’s retail prices were 4% lower than last year as the retailer continues to invest in price.
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