Responding to the CMA's cost of living update, which includes
updates into its investigations into grocery retailers, Helen
Dickinson, Chief Executive of the British Retail Consortium,
said:
“We welcome the CMA update, which once again shows that
supermarkets are doing their best to provide great value
groceries for their customers. With food inflation now returned
to normal levels, fierce competition between retailers is
ensuring customers are the big winners from the UK's supermarket
sector.
On Competition and profitability in the groceries
sector:
“The CMA notes the sharp decline in food inflation, which has
fallen significantly to just 1.5% in June 2024, below the level
of headline inflation. While operating profits have recovered
slightly from the historically low levels seen in 2022/23, they
remain in line, or below levels seen before the cost of living
crisis. The CMA recognises the ‘effective competition' between
retailers is keeping prices as low as possible for customers and
ensuring that where retailers can make cost savings, these are
passed on to customers. This competition is one of the key
reasons why the UK continues to deliver some of the cheapest
groceries in Europe.
On Loyalty Card Pricing:
“We welcome the CMA's update that they have not found widespread
evidence of misleading loyalty promotions. Whether it's everyday
value, or loyalty schemes discounts, retailers know they have to
demonstrate clear value to attract and retain customers.
On Road fuel update:
“The fuel market covers both supermarkets and non-supermarket
fuel retailers. Supermarkets remain focused on delivering the
best overall value for their customers across all products that
they sell, including food and petrol. Retailers will continue to
work closely with the CMA and provide the necessary data to allow
consumers to find the best prices for petrol and diesel.”
-ENDS-
Notes:
- On Groceries competition and
profitability update, the CMA writes: “Overall,
consistent with our July 2023 update, this update does not find
evidence that groceries inflation is being driven at an
aggregate level by weak competition between retailers. This
should provide consumers with reassurance that effective
competition is ensuring continued pressure on retailers to pass
on cost savings to their customers.”
- On Loyalty cards update, the
CMA writes: “Our analysis – involving tens of thousands of
loyalty price promotions – is ongoing, but
the results to date suggest we are unlikely to identify
widespread evidence of loyalty promotions that mislead shoppers
in this way.”
- On Road Fuel update, the BRC
does not generally handle enquiries on petrol. For more
information please reach out directly to fuel retailers, or to
the Petrol Retailers Association.
