Simon Roberts, Chief Executive of Sainsbury’s, has expressed concerns regarding potential tax increases proposed by Rachel Reeves, warning that such measures might exacerbate inflation. He indicated that shoppers are currently cautious with discretionary spending, largely due to prevailing economic uncertainties and tight household budgets. To address this, Sainsbury’s brand Argos has initiated its Black Friday promotions earlier than the previous year to stimulate consumer spending.
Roberts noted that the extent of food price inflation remained uncertain. He mentioned significant inflationary pressures on the cost base this year and emphasized the importance of avoiding any further impacts that could escalate inflation. He highlighted a £140 million increase in Sainsbury’s employers’ national insurance costs, along with new regulatory expenses related to packaging, amounting to tens of millions of pounds.
The company has advocated against additional business rates affecting large shops, a move that could impact many supermarkets. Despite these challenges, Sainsbury’s plans to open one new supermarket each month over the next 18 months, marking its largest expansion in over a decade. This strategic growth aligns with an upward revision of annual profit expectations to over £1 billion, bolstered by an increase in grocery sales.
In the six months leading to September 13, Sainsbury’s recorded a 4.8% rise in sales, totaling £15.6 billion. Its pre-tax profits rose 5% to £271 million, albeit with £69 million attributed to one-off costs related to restructuring. The company is also set to distribute a £250 million special dividend to shareholders and has plans for share buybacks totaling £150 million.
Roberts defended the decision to return funds to shareholders by stating that Sainsbury’s has invested £1 billion to keep prices down for customers over the past five years. Despite a highly competitive market, the company believes it has improved its market share and is optimistic as it approaches the holiday season.
Source: https://www.theguardian.com/business/2025/nov/06/sainsburys-rachel-reeves-tax-rises-retailers-inflation