We usually are not rip-off retailers, says Sainsbury’s
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osses at Sainsbury’s have stated they’re “not rip-off retailer” or “profiteers” as they defended the revenue made by the retailer amid scrutiny associated to meals inflation over the previous 12 months.
The firm additionally defended elevated pay packages for its senior executives at its annual basic assembly in London, regardless of the continued cost-of-living disaster.
It comes two days after the UK’s second largest chain reported a 9.8% soar in gross sales for the most recent quarter and highlighted that meals inflation is “starting to fall”.
The UK competitors watchdog is investigating grocery retailers within the face of accusations they might be profiteering from dearer food and drinks.
Latest figures from the Office for National Statistics (ONS) present meals inflation eased barely in May however remained at 18.4%.
On Monday, the Competition and Markets Authority (CMA) additionally stated it had discovered that drivers paid practically £1 billion extra for gas at supermarkets final 12 months because of elevated margins.
In response, power and web zero minister Grant Shapps stated: “We’ll shine a light on rip-off retailers to drive down prices and make sure they’re held to account by putting into law new powers to increase transparency.”
At the retailer’s AGM on Thursday, the grocery store group’s chairman Martin Scicluna defended the business.
“To be very, very clear, we are not profiteering and we are not rip-off retailers,” he stated.
“We make 3p on every pound we sell. If we offered you something for £1, and I said I made 3p on that product, I don’t think you would call us a rip-off merchant or a profiteer, but some MPs have.”
The grocery store highlighted that it has reduce costs on 120 necessities resembling bread, butter, milk and pasta as wholesale prices have eased, with £60 million invested into worth reductions since March.
Shareholders met to vote on a sequence of things, together with the pay bundle for firm executives.
The remuneration consists of an virtually £5 million deal for chief government Simon Roberts.
The CEO since 2020 noticed his total pay deal for the 12 months to March rise by greater than £1.4 million to £4.947 million, because of virtually £4 million in bonuses.
After questioning from shareholders, Mr Scicluna stated he supported the bundle.
He stated: “What we are trying to do is focusing on rewards for Simon, the operating board, senior leadership and colleagues. That’s why our colleague pay has gone up 44% over the past four years.
“It is a lower fixed pay, around 19% of the total, but we incentivised Simon and the team with the bonus and LTIPs (long-term incentive payments) to make sure that we grow profits, because it is good for the company and means we can invest in innovation, technology and reward shareholders.
“All this is balanced and we try to do it in a proper way – because it comes through the board, I stand by it completely.”