J Sainsbury Plc’s chairman has hit back against accusations from politicians that supermarkets are using lofty food prices to boost their profits.
(Bloomberg) — J Sainsbury Plc’s chairman has hit back against accusations from politicians that supermarkets are using lofty food prices to boost their profits.
“To be very, very clear, we are not profiteering and we are not rip-off retailers,” said Martin Scicluna, speaking at Sainsbury’s annual general meeting on Thursday.
Supermarket representatives from Tesco Plc, Sainsbury, Asda and Morrisons were recently asked by UK politicians whether they were “behaving” on their pricing amid allegations that some price increases aren’t warranted. This week a report from the Competition and Markets Authority said consumers had paid about £900 million ($1.14 billion) more for gasoline at supermarkets last year due to weak competition.
In response to the CMA report, UK Energy Minister Grant Shapps said the government would “shine a light on rip-off retailers.”
“We make 3p on every pound we sell,” said Scicluna. “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.”
Sainsbury reported a rise in sales earlier this week both by value and volume. Chief Executive Officer Simon Roberts said Sainsbury invests any benefit from any other part of the business back into food.
The company said it has spent more than £60 million on lowering grocery prices since March, covering more than 120 basic items like toilet paper, bread and milk.
The Press Association reported the news earlier.
Read more: British Supermarkets Deny Food Price Profiteering to MPs
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