Home Business NewsBusiness Sainsbury’s: ‘uncertain’ on future prices as its costs begin to rise

Sainsbury’s: ‘uncertain’ on future prices as its costs begin to rise

9th Nov 16 4:37 pm

More Brexit woes?

Sainsbury’s has said that the weakening of the pound has made them ‘uncertain’ as to how it will affect their future prices.

After looking at their second half-year result the company said they would continue to cut their prices currently but could not guarantee this deflation into next year as cost pressures begin to rise.

In the six months leading up to the 24 September the supermarket reported a 1 per cent dip in its sales.

Shoppers have been able to enjoy the fall in prices thanks to price wars between major discounters Lidl and Aldi.

After the Brexit vote, the continued collapse of the pound has put pressure on the supermarkets pricing as producers and suppliers look to recover greater import costs from their customers.

Higher supermarket prices are expected to hit during the Christmas season when many contracts will have expired or will be due for renewal.

Sainsbury’s told Sky News: “The market remains competitive and pricing pressures continue to impact margins.

“The full impact of the devaluation of sterling on retail prices is as yet uncertain.”

Despite this warning of a tougher second half for the business, Sainsbury’s said it’s full year earnings remained in line with market expectations.

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