London, Jun. 27, (PA Media/dpa/GNA) – Tesco has told British lawmakers it is the “most competitive we have ever been” as supermarket chiefs were quizzed on allegations of profiteering during the cost-of-living crisis.
Asked about its profit figures, Tesco commercial director Gordon Gafa told parliament’s Business and Trade Committee: “We have not made more profit year-on-year. We have actually made 7% less profit versus our last financial year. It’s important to be clear on that from the outset.”
Supermarket senior executives from Tesco, Asda, Morrisons and Sainsbury’s have been questioned by MPs over eye-watering food inflation as the latest figures add to hopes that price hikes have passed the peak.
Last week the Office for National Statistics published the latest inflation figures showing that food price rises have eased slightly but remain at a stubbornly high 18.4%.
It comes as supermarkets are under increasing pressure to hand down savings they are seeing on wholesale items to consumers, who have faced punishing food price inflation in recent months.
Addressing Gafa, committee chairman Darren Jones said: “According to your 2018/19 annual accounts you made a profit of £1.6 billion ($2.03 billion) and in 2021/2022 accounts you made a profit of 2.03 billion. So you’ve increased your profit quite significantly there, haven’t you?”
Gafa replied: “As I say, profits year-on-year for the group are down, we have sold more year on year and we have made less.
But Jones pressed: “How can it be possible that you are making hundreds of millions of pounds in additional profit?”
Gafa replied: “I’m referring to our latest accounts for 2022/23 so that may be the discrepancy.”
Sainsbury’s told the committee it was not passing all the costs of inflation in its supply chain to customers, as it too was quizzed over whether supermarkets are profiteering amid rampant food inflation.
Rhian Bartlett, food commercial director at Sainsbury’s, told the committee: “We are acutely aware about the cost-of-living impact on our colleagues and how difficult they are all finding it right now.”
GNA