Former Sainsbury’s boss warns price hike in the UK supermarkets over the next six months. Justin King, former CEO of J Sainsbury plc, raise the alarm before the return of inflation, which he believes to bring in a price rise by at least 5 percent in the UK supermarkets.
Mr King, now vice-chairman of the investment firm Terra Firma, anticipates supermarkets will be “squeezed in the jaws” of resisting price rises while also dealing with increased costs. Due to the fall in value of Sterling and slow moving of cost of weekly shop, the price rise in indispensable, says Mr King.
“Around 40% to 50% of what we buy is sourced abroad in a currency other than the pound, so with the current rates of exchange we could expect those things to be about 10% more expensive. And if that’s about half of what we buy, then that means something of the order of 5% inflation,” he added.