Key facts
- Sainsbury's CEO Simon Roberts urged the next UK prime minister to lower energy costs for the food industry.
- Roberts requested government engagement to reduce energy levies and costs specific to the food sector.
- He called for policies to boost shopper confidence and support increased hiring, particularly for young individuals.
- Roberts indicated that food inflation may end the year below the predicted nine percent.
- Shop inflation held steady at 1.2 percent year-on-year in June.
Simon Roberts, the chief executive of Sainsbury's, has urged the incoming UK prime minister to prioritize reducing energy costs for the food industry, arguing that it faces a greater burden than other sectors. Speaking on Tuesday, Roberts emphasized the need for government engagement to lower energy levies and costs, which have been exacerbated by recent global events.
Roberts also called for policies that would foster confidence and optimism among shoppers, alongside support for increased hiring, particularly of young people. He highlighted that youth unemployment in the UK is at its highest level in a decade, with many businesses forced to halt hiring due to increased energy taxes and national insurance contributions. Sainsbury's, which employs 140,000 people, reaffirmed its commitment to youth employment.
While acknowledging ongoing uncertainty about inflation, Roberts suggested that food inflation might come in below the Food and Drink Federation's prediction of at least nine percent by year-end. He noted that shop inflation remained unchanged at 1.2 percent year-on-year in June, according to the British Retail Consortium. Roberts believes that easing inflationary pressures will be crucial for customer confidence in the latter half of the year.