Sainsbury’s chief calls for Budget action on consumer confidence
However, a quarter of Sainsbury's sales are from non-food products compared with around 7% for Tesco, making it more vulnerable to a broader downturn
Sainsbury’s boss Simon Roberts has called on the government to introduce measures to improve consumer confidence in the Budget this month.
He told Reuters that despite falling inflation, higher wages, and solid employment levels, UK shoppers remain nervous about spending on bigger ticket items.
Recent surveys have shown UK consumer confidence has plunged in the wake of Prime Minister Keir Starmer’s warnings about the state of the British economy.
The likely need for tax increases in the budget has prompted fears about trading in the run-up to Christmas.
Sainsbury’s has a more than 15% share of Britain’s grocery market, trailing only Tesco.
However, a quarter of Sainsbury’s sales are from non-food products compared with around 7% for Tesco, making it more vulnerable to a broader downturn.
Roberts said: “Discretionary markets continue to be difficult. Consumers inevitably are wanting to be clearer about what’s going to happen next and for that reason we see a continued caution in discretionary spending. We need to see interest rates continue to come down because that directly impacts household spending. I think clarity in the budget, one way or another, is helpful.”
“What we’ve seen over the last three or four years through the pandemic and the inflation crisis, Christmas has been a time when people in the end want to be together with their friends and family and loved ones. There’s absolutely no complacency at all in our business. We’ve had three strong Christmases and we’re preparing for a fourth one to come.”
