The figures are out there for anyone to read. The supermarkets have not been profiteering from inflation.
The very fact that there has been shortages on the shelves tells you that they refuse to put prices up on some goods.
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£40 million less profit during a year of significant pain to a large percentage of the population doesn’t suggest that sainsburys have not been profiteering. It’s still 690millon profit in a high inflation year.
This guy isn’t lying, I’m no fan of the megacorp led supermarkets and prefer to shop small when I can, but supermarkets are not the ones driving the crisis we’re in. You can check their profits.
Energy companies on the other hand are posting record profits and screwing us all individually and murdering small businesses.
I know of 3 small businesses I regularly shop at that are having closing down sales this month. Every single one told me they couldn’t keep up with the energy bills. Obviously this part is anecdotal but I imagine it’s a similar story everywhere.
After all, pay and bonus’ definitely affect profit. As an accountant it’s definitely sparked my curiosity. I’m guessing all those at the top have taken a cut considering the state of the past year
It is probably accurate. People are spending less, because they have less to spend. Costs to the business have probably skyrocketed, including energy and logistics. With fierce competitors like Aldi and Lidl eating away at their market share, they cannot afford to raise prices too much either.
That is true for Sainsbury’s. They have a negative net profit margin at the moment, which is of course not sustainable. Operating costs and supplier prices are up, eating up the profit.
Other supermarkets are in better positions. As a “full price supermarket”, Sainsbury’s is in a tricky position when money is tight.
Wow, Sainsburys is making a loss due to high prices? Fair play. Obviously, if they were raking in hundreds of millions in profits despite the sky rocketing cost of living, then I might have something to say. But they’re making a loss, so good on them for not raking in hundreds of millions in profits while people with jobs have to queue up at foodbanks.
He argues the supermarkets are not making profits but you can sure bet the big conglomerates that own the likes of Cadbury’s are.
Shrinking everything down to the point now where things look comical and still charging crazy prices.
They’re right. It’s virtually impossible for supermarkets to make a net profit of over 5% unless it’s Harrods or some shit. Sainsbury’s margin has always been lower than other supermarkets anyway.
Someone in the food chain is definitely profiting from massive price hikes. WHO is it then?
As the Boss once sang: “There’s a joke around here somewhere and it’s on me.”
He might be right about parts of their business but their are supermarkets under investigation right now for price gouging fuel as well as other things. These businesses like everyone else are riding the wave of inflation but let’s not pretend they’re some kind of charity they’ll still be keeping up with their profit targets
>While the headline rate of food inflation was around 19%, that didn’t mean households were spending 19% more on their food, Mr Roberts added, since most shoppers had decided to **buy less**, trade down to less expensive choices, or shop more frequently to avoid waste.
“decided” not to eat you mean?
Unbelievable this boy has the audacity to try gaslight us all. This boy is part of the greedflation that is happening, look at the fuel price difference, even food. Please tell this boy that made millions in profits to sit down and go back to gaslighting school 101 as his skills are slipping
Supermarkets aren’t.
Oil companies are. It’s simple accounting. You can’t have “record profits” without selling something for vastly more than what you paid for it.
Hmmm, sounds like PR rubbish! As they are stating massive profits. Shelves are empty due energy cost increases to suppliers and they don’t want it to affect their profit margins.
The very article states that Sainsbury’s are indeed massively profiting right now. Over HALF A BILLION POUNDS IN PROFIT THIS YEAR ALONE.
This CEO cunt is playing a well trodden bait-and-switch with the largely financially illiterate public; Pretending that a drop in profits constitutes a loss. It does not. At all.
Sainsbury’s is still making literally hundreds of millions on pounds in profit every year. Not total revenue; RAW PROFIT.
They’re taking us all for fools.
Can we do the maths?
Their profits are only down £40m from £730m (-6%) despite energy bills being almost +100% higher in the same time frame.
Yes, it’s not ‘profiteering’ by definition – but that’s only the case because they’ve had to fork out their inflated profits to the energy companies.
Overpriced and under weight much worse quality on basic food items than others. Sainsbury’s has been a rip off for decades.
A frugal shopper will find the price tags literally offensive.
They rely on shoppers who don’t compare. Last place I’d shop.
Not sure if the figures are the honest truth and not a half truth. How much of the gross profit was reinvested or creative accounting used to declare a lower net profit
Supposedly supermarket profit margins are margins are razor thin.
Check out the little wanky super market sympathisers in this thread. Laughable.
Companies such as Kellogg’s and Heinz have been the worst offenders at increasing prices.
We should be looking at them first.
I’ve stopped buying both as it’s just not worth £4.50 for a bottle of ketchup
So they are making a loss then if they are not making a profit. Is this what he means
I suspect that a lot of price increases we see at retail are a result of energy costs, both the cost of running the retail space (very energy intensive) and the cost of energy to produce, package and transport goods to retail which would get passed on on the wholesale price.
I work in a independent convenience store and our margins in their most simple form (price customer pays – cost to buy product in) has increased a fair bit. This is because our costs of running a shop has increased massively, largely due to energy costs and wage increases. What was being sold at a 20% margin now needs 25-30% margin or the business is unprofitable. Our store made about 2% profit last year once all costs were accounted for.
26 comments
The figures are out there for anyone to read. The supermarkets have not been profiteering from inflation.
The very fact that there has been shortages on the shelves tells you that they refuse to put prices up on some goods.
[deleted]
£40 million less profit during a year of significant pain to a large percentage of the population doesn’t suggest that sainsburys have not been profiteering. It’s still 690millon profit in a high inflation year.
This guy isn’t lying, I’m no fan of the megacorp led supermarkets and prefer to shop small when I can, but supermarkets are not the ones driving the crisis we’re in. You can check their profits.
Energy companies on the other hand are posting record profits and screwing us all individually and murdering small businesses.
I know of 3 small businesses I regularly shop at that are having closing down sales this month. Every single one told me they couldn’t keep up with the energy bills. Obviously this part is anecdotal but I imagine it’s a similar story everywhere.
The article mentions 10% pay rises
Will be interesting to see how much his take home pay and bonus increases or decreases this year, if at all, considering [in 2022 his take home pay plus bonus and benifits was £3.79m](https://www.retailgazette.co.uk/blog/2022/06/sainsburys-ceo-roberts-pay-almost-trebles-as-he-claims-bonus/#:~:text=Roberts'%20take%20home%20pay%2C%20which,paid%20out%20the%20prior%20year.)
After all, pay and bonus’ definitely affect profit. As an accountant it’s definitely sparked my curiosity. I’m guessing all those at the top have taken a cut considering the state of the past year
It is probably accurate. People are spending less, because they have less to spend. Costs to the business have probably skyrocketed, including energy and logistics. With fierce competitors like Aldi and Lidl eating away at their market share, they cannot afford to raise prices too much either.
That is true for Sainsbury’s. They have a negative net profit margin at the moment, which is of course not sustainable. Operating costs and supplier prices are up, eating up the profit.
Other supermarkets are in better positions. As a “full price supermarket”, Sainsbury’s is in a tricky position when money is tight.
Wow, Sainsburys is making a loss due to high prices? Fair play. Obviously, if they were raking in hundreds of millions in profits despite the sky rocketing cost of living, then I might have something to say. But they’re making a loss, so good on them for not raking in hundreds of millions in profits while people with jobs have to queue up at foodbanks.
He argues the supermarkets are not making profits but you can sure bet the big conglomerates that own the likes of Cadbury’s are.
Shrinking everything down to the point now where things look comical and still charging crazy prices.
They’re right. It’s virtually impossible for supermarkets to make a net profit of over 5% unless it’s Harrods or some shit. Sainsbury’s margin has always been lower than other supermarkets anyway.
Someone in the food chain is definitely profiting from massive price hikes. WHO is it then?
As the Boss once sang: “There’s a joke around here somewhere and it’s on me.”
He might be right about parts of their business but their are supermarkets under investigation right now for price gouging fuel as well as other things. These businesses like everyone else are riding the wave of inflation but let’s not pretend they’re some kind of charity they’ll still be keeping up with their profit targets
>While the headline rate of food inflation was around 19%, that didn’t mean households were spending 19% more on their food, Mr Roberts added, since most shoppers had decided to **buy less**, trade down to less expensive choices, or shop more frequently to avoid waste.
“decided” not to eat you mean?
Unbelievable this boy has the audacity to try gaslight us all. This boy is part of the greedflation that is happening, look at the fuel price difference, even food. Please tell this boy that made millions in profits to sit down and go back to gaslighting school 101 as his skills are slipping
Supermarkets aren’t.
Oil companies are. It’s simple accounting. You can’t have “record profits” without selling something for vastly more than what you paid for it.
I see no supermarket with “record profits”.
Oil companies however…
https://www.reuters.com/business/retail-consumer/britains-sainsburys-forecasts-current-year-profit-above-market-expectations-2023-04-27/#:~:text=For%202023%2D24%20Sainsbury%27s%20forecast,flow%20of%20645%20million%20pounds.
Hmmm, sounds like PR rubbish! As they are stating massive profits. Shelves are empty due energy cost increases to suppliers and they don’t want it to affect their profit margins.
The very article states that Sainsbury’s are indeed massively profiting right now. Over HALF A BILLION POUNDS IN PROFIT THIS YEAR ALONE.
This CEO cunt is playing a well trodden bait-and-switch with the largely financially illiterate public; Pretending that a drop in profits constitutes a loss. It does not. At all.
Sainsbury’s is still making literally hundreds of millions on pounds in profit every year. Not total revenue; RAW PROFIT.
They’re taking us all for fools.
Can we do the maths?
Their profits are only down £40m from £730m (-6%) despite energy bills being almost +100% higher in the same time frame.
Yes, it’s not ‘profiteering’ by definition – but that’s only the case because they’ve had to fork out their inflated profits to the energy companies.
Overpriced and under weight much worse quality on basic food items than others. Sainsbury’s has been a rip off for decades.
A frugal shopper will find the price tags literally offensive.
They rely on shoppers who don’t compare. Last place I’d shop.
Not sure if the figures are the honest truth and not a half truth. How much of the gross profit was reinvested or creative accounting used to declare a lower net profit
Supposedly supermarket profit margins are margins are razor thin.
Check out the little wanky super market sympathisers in this thread. Laughable.
Companies such as Kellogg’s and Heinz have been the worst offenders at increasing prices.
We should be looking at them first.
I’ve stopped buying both as it’s just not worth £4.50 for a bottle of ketchup
So they are making a loss then if they are not making a profit. Is this what he means
I suspect that a lot of price increases we see at retail are a result of energy costs, both the cost of running the retail space (very energy intensive) and the cost of energy to produce, package and transport goods to retail which would get passed on on the wholesale price.
I work in a independent convenience store and our margins in their most simple form (price customer pays – cost to buy product in) has increased a fair bit. This is because our costs of running a shop has increased massively, largely due to energy costs and wage increases. What was being sold at a 20% margin now needs 25-30% margin or the business is unprofitable. Our store made about 2% profit last year once all costs were accounted for.