Home Breaking NewsCo-op warns food price hike with pressure on Christmas turkeys and other food items

Co-op warns food price hike with pressure on Christmas turkeys and other food items

by LLB staff reporter
16th Sep 21 11:40 am

The Co-op has warned that food prices will increase and that profits will be under pressure due to the ongoing supply chain crisis which is hitting nearly all major supermarkets.

The Co-opโ€™s chief executive Steve Murrells told PA news agency that an increase in food prices is โ€œcomingโ€ as the UK has a severe shortage of lorry drivers.

There has been an increase in shipping costs and global commodity price rises and the Co-op are looking into how they can offset cost pressures the โ€œbest we can,โ€ but โ€œsome of that will filter downโ€ to the customer.

The Co-op warned that the โ€œunplanned supply chain challenges and ongoing Covid costs will bring greater levels of uncertainty.

โ€œThis will in turn apply pressure on our prior expected level of profitability for year-end.โ€

Christmas is 100 days away and the supply chain is going to get worse as we approach the festive season as supermarkets are getting ready for the season.

Murrells warned some festive ranges will be affected and the Co-op โ€œmight not be able to get every size of turkey, you will be able to get a turkey for your Christmas meal.โ€

He added, โ€œWeโ€™re right in the middle of the storm and everybody is trying to find a short, mid and long-term solution to this.โ€

The Co-op has announced a new partnership with Amazon to double their online sales by ยฃ200m by year end.

Murrells said, โ€œAmazon wants to be a force for social good.

โ€œBut itโ€™s a trial, customers and members will tell us whether or not we have done the right thing.โ€

In the six months to 3 July the Co-op reported underlying pre-tax operating lossed of ยฃ15m, compared to ยฃ56m profits last year.

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