The rising cost of living has hit consumers across the board. As retail giant Sainsbury's confirms its profits are now back the black, the supermarket says it is putting customers and staff first revealing a "clear long term focus on keeping prices low". Last week Sainsbury's pledged to lower prices across 150 of its fresh products.
Simon Roberts, chief executive of J Sainsburys and former MD of Nottingham's biggest company, Boots, said: "In a year of unprecedented change we have been relentlessly focused on putting customers and colleagues first while delivering the first year of our plan to put food back at the heart of Sainsbury’s."
Grocery sales for the supermarket retailer are up 7.6% versus fiscal year 2019/20, and broadly flat versus 2020/21, reflecting sustained consumer demand during the pandemic. However, pre-tax profits for the 12 months to March 5 hit £854 million, compared with a £164 million pre-tax loss a year earlier and £278m in 2019/20.
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Mr Roberts added: “We know just how much everyone is feeling the impact of inflation, which is why we are so determined to keep delivering the best value for customers. We have been able to drive more investment into lowering food prices funded by our comprehensive cost savings plans.
"As a result, we continue to inflate behind competitors on the products customers buy most often. Last week we announced the next bold phase of investment, lowering prices across 150 of our highest volume fresh products."
He added: "We said we would invest in value, innovation and service and that’s exactly what we’re doing. We have outperformed key competitors on both a one and two-year basis while also delivering strong underlying profit growth, improved returns and consistent retail free cash flow. This gives us a strong foundation to keep building momentum in the year ahead."
Spending on staff pay rises was reported to be £100 million with the chief executive saying: "All Sainsbury's and Argos retail colleagues now earn the Living Wage wherever they work in the UK, we were the first major supermarket to make this happen.."
Acknowledging that world events continued to have a "profound impact" on the sector, he added: "We’re doing everything we can to help with the humanitarian effort, and are working to manage the supply chain impacts."
