The boss of supermarket giant Iceland has issued a desperate plea as stores are unable to open to shoppers. The retailer's CEO, Richard Walker, says it is in 'trouble' and has called on the government for fast action.
Mr Walker says that extortionate costs have left his business “fighting to keep the lights on” and is calling for an energy price cap for businesses in the UK. Speaking to The Guardian, he raised his fears about a “half-baked response” from newly appointed Prime Minister, Lizz Truss.
He worries that her plans will fall way short of addressing people’s needs as banking giant Goldman Sachs warns that UK inflation could top 22% next year. Mr Walker is particularly critical of Liz Truss’ plans to cut business rates for small and medium businesses as he believes it “won’t even touch the sides”.
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“What they need to understand is [this affects] big business as well as small, because it’s exactly the same trouble we’re in – there’s just more jobs at stake,” he added. Since the retail chain is reliant on storing produce in fridges and freezers, its energy bills are expected to soar more than other supermarkets.
But Mr Walker has acknowledged that Iceland is “large and strong enough to ride out this storm”. Many other suppliers are not, and will risk going bust, which will put thousands of jobs at risk, the Mirror.
Iceland saw its energy bill rise to £70million last year, equivalent to around 2% of its sales. In the first quarter alone, its bill jumped by £19million, suggesting that it is on course to more than double this year. The energy price cap covers domestic customers on standard variable rate tariffs (SVTs) - but there is no price cap for businesses.
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