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<\/div>\n\/\/<\/span> Supermarket bosses have denied profiteering claims and said they have been shielding customers from the full impact of rising costs.<\/h6>\n\/\/ <\/span>Tesco exec Gordon Gafa told MPs: \u201cWe are the most competitive we have ever been\u201d<\/h6>\nSupermarket bosses have denied claims of profiteering from soaring food prices and rejected calls to introduce a grocery price cap.<\/p>\n
Executives from Asda, Morrisons, Sainsbury\u2019s and Tesco told MPs on Tuesday that they were shielding customers from the full impact of rising costs.<\/p>\n
The grocers were questioned by MPs at the Business and Trade Committee on why prices continued to rise despite wholesale costs starting to fall.<\/p>\n
Tesco commercial director Gordon Gafa told MPs: \u201cWe are the most competitive we have ever been.\u201d<\/p>\n
He insisted the grocer had not been benefiting from rising prices, and said: \u201cWe have not made more profit year-on-year, we have actually made 7% less profit versus our last financial year.\u201d<\/p>\n
Earlier this year, Tesco\u2019s\u00a0retail operating profits slipped 6.1% to \u00a32.49bn driven down by market inflation and ongoing investment into its customer offer.<\/p>\n
Meanwhile, Sainsbury\u2019s food commercial director Rhian Bartlett pointed out the grocer had spent more than \u00a3560m on \u201ckeeping prices low\u201d.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span><\/p>\n\u201cIn the most recent year we made lower profits, at \u00a3690m \u2013 input costs are not being fully passed through to our shelf prices.\u201d<\/p>\n
\u201cWe are inflating behind our input costs, and we are inflating \u2013 wherever possible \u2013 behind the market.\u201d<\/p>\n
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Similarly, Morrisons chief executive Dave Potts said that the supermarket is \u201cacutely aware of the pressure many millions of people have come under\u201d and that it is \u201cas close now as we have ever been to Aldi and Lidl prices\u201d.<\/span><\/p>\nMinisters have been considering introducing voluntary price caps on essential food items, similar to the French model, to bring down prices for consumers.<\/p>\n
\u201cWe don\u2019t believe price caps would be helpful,\u201d Gafa told the Committee.<\/p>\n
Similarly, Bartlett warned of \u201cunintended consequences\u201d by introducing caps.<\/p>\n
Bartlett said the industry was already a \u201cfiercely competitive\u201d market, with supermarkets \u201cwatching and matching each other\u2019s prices all the time\u201d.<\/p>\n
\u201cI\u2019m not sure what price caps would add to that process other than bureaucracy.\u201d<\/p>\n
\u201cIt can have unintended consequences in selling out and other prices moving up and down, so I think this market self-regulates to a positive extent,\u201d she added.<\/p>\n
Meanwhile, MPs quizzed Asda chief commercial officer Kris Comerford about the grocer\u2019s borrowing costs, which surged from \u00a366m in 2018-19 to almost half a billion pounds in 2021-22, and its high debt repayments.<\/p>\n
The ownership change has been \u201cfactored in\u201d, and Asda is still \u201cinvesting in the customer offer\u201d, Comerford said.<\/p>\n
Tuesday\u2019s committee meeting comes as the Competition and Markets Authority is investigating competition in the grocery sector and whether \u201cany failure is contributing to grocery prices being higher\u201d.<\/p>\n
Bartlett said: \u201cWe\u2019ve submitted lots of detail on [profits] to the CMA and have had good discussions with the CMA.\u201d<\/p>\n
The watchdog is also looking at profiteering from fuel prices, which Potts said was a good move as there was more profit being made in fuel than there had been historically.<\/p>\n
Supermarket bosses have denied claims of profiteering from soaring food prices and rejected calls to introduce a grocery price cap.<\/p>\n
Executives from Asda, Morrisons, Sainsbury\u2019s and Tesco told MPs on Tuesday that they were shielding customers from the full impact of rising costs.<\/p>\n
The grocers were questioned by MPs at the Business and Trade Committee on why prices continued to rise despite wholesale costs starting to fall.<\/p>\n
Tesco commercial director Gordon Gafa told MPs: \u201cWe are the most competitive we have ever been.\u201d<\/p>\n
He insisted the grocer had not been benefiting from rising prices, and said: \u201cWe have not made more profit year-on-year, we have actually made 7% less profit versus our last financial year.\u201d<\/p>\n
Earlier this year, Tesco\u2019s\u00a0retail operating profits slipped 6.1% to \u00a32.49bn driven down by market inflation and ongoing investment into its customer offer.<\/p>\n
Meanwhile, Sainsbury\u2019s food commercial director Rhian Bartlett pointed out the grocer had spent more than \u00a3560m on \u201ckeeping prices low\u201d.<\/p>\n
Subscribe to Retail Gazette for free<\/strong><\/h5>\nSign up\u00a0here\u00a0to g<\/span>et the latest news straight into your inbox each morning<\/span><\/p>\n\u201cIn the most recent year we made lower profits, at \u00a3690m \u2013 input costs are not being fully passed through to our shelf prices.\u201d<\/p>\n
\u201cWe are inflating behind our input costs, and we are inflating \u2013 wherever possible \u2013 behind the market.\u201d<\/p>\n
<\/p>\n
Similarly, Morrisons chief executive Dave Potts said that the supermarket is \u201cacutely aware of the pressure many millions of people have come under\u201d and that it is \u201cas close now as we have ever been to Aldi and Lidl prices\u201d.<\/span><\/p>\nMinisters have been considering introducing voluntary price caps on essential food items, similar to the French model, to bring down prices for consumers.<\/p>\n
\u201cWe don\u2019t believe price caps would be helpful,\u201d Gafa told the Committee.<\/p>\n
Similarly, Bartlett warned of \u201cunintended consequences\u201d by introducing caps.<\/p>\n
Bartlett said the industry was already a \u201cfiercely competitive\u201d market, with supermarkets \u201cwatching and matching each other\u2019s prices all the time\u201d.<\/p>\n
\u201cI\u2019m not sure what price caps would add to that process other than bureaucracy.\u201d<\/p>\n
\u201cIt can have unintended consequences in selling out and other prices moving up and down, so I think this market self-regulates to a positive extent,\u201d she added.<\/p>\n
Meanwhile, MPs quizzed Asda chief commercial officer Kris Comerford about the grocer\u2019s borrowing costs, which surged from \u00a366m in 2018-19 to almost half a billion pounds in 2021-22, and its high debt repayments.<\/p>\n
The ownership change has been \u201cfactored in\u201d, and Asda is still \u201cinvesting in the customer offer\u201d, Comerford said.<\/p>\n
Tuesday\u2019s committee meeting comes as the Competition and Markets Authority is investigating competition in the grocery sector and whether \u201cany failure is contributing to grocery prices being higher\u201d.<\/p>\n
Bartlett said: \u201cWe\u2019ve submitted lots of detail on [profits] to the CMA and have had good discussions with the CMA.\u201d<\/p>\n
The watchdog is also looking at profiteering from fuel prices, which Potts said was a good move as there was more profit being made in fuel than there had been historically.<\/p>\n
\u201cIn the most recent year we made lower profits, at \u00a3690m \u2013 input costs are not being fully passed through to our shelf prices.\u201d<\/p>\n
\u201cWe are inflating behind our input costs, and we are inflating \u2013 wherever possible \u2013 behind the market.\u201d<\/p>\n
<\/p>\n
Similarly, Morrisons chief executive Dave Potts said that the supermarket is \u201cacutely aware of the pressure many millions of people have come under\u201d and that it is \u201cas close now as we have ever been to Aldi and Lidl prices\u201d.<\/span><\/p>\n Ministers have been considering introducing voluntary price caps on essential food items, similar to the French model, to bring down prices for consumers.<\/p>\n \u201cWe don\u2019t believe price caps would be helpful,\u201d Gafa told the Committee.<\/p>\n Similarly, Bartlett warned of \u201cunintended consequences\u201d by introducing caps.<\/p>\n Bartlett said the industry was already a \u201cfiercely competitive\u201d market, with supermarkets \u201cwatching and matching each other\u2019s prices all the time\u201d.<\/p>\n \u201cI\u2019m not sure what price caps would add to that process other than bureaucracy.\u201d<\/p>\n \u201cIt can have unintended consequences in selling out and other prices moving up and down, so I think this market self-regulates to a positive extent,\u201d she added.<\/p>\n Meanwhile, MPs quizzed Asda chief commercial officer Kris Comerford about the grocer\u2019s borrowing costs, which surged from \u00a366m in 2018-19 to almost half a billion pounds in 2021-22, and its high debt repayments.<\/p>\n The ownership change has been \u201cfactored in\u201d, and Asda is still \u201cinvesting in the customer offer\u201d, Comerford said.<\/p>\n Tuesday\u2019s committee meeting comes as the Competition and Markets Authority is investigating competition in the grocery sector and whether \u201cany failure is contributing to grocery prices being higher\u201d.<\/p>\n Bartlett said: \u201cWe\u2019ve submitted lots of detail on [profits] to the CMA and have had good discussions with the CMA.\u201d<\/p>\n The watchdog is also looking at profiteering from fuel prices, which Potts said was a good move as there was more profit being made in fuel than there had been historically.<\/p>\n