19-05-2022 15:32
“Golden era” of cheap food is over, ex-Sainsbury's CEO says
The “golden era” of cheap food in the UK is coming to an end, the Guardian reported, citing former Sainsbury’s boss Justin King.
Mr. King says UK households should prepare for higher grocery bills in the long term. The ex-Sainsbury's CEO who is now a non-executive director at Marks & Spencer believes supermarkets would not be able to cope with surging food prices nor will they be capable of protecting consumers from it.
Mr. King warns British consumers would face difficult choices as to what they want to buy. The situation is made worse by galloping inflation and the side effects of the Russia-Ukraine conflict. “I suspect what we will see is a higher proportion, across the piece, spent on food for the longer term. It won’t actually be that high in historical terms but it will require adjustments in terms of how we all prioritize our family budget spending,” he summarized.
According to Mr. King, many UK families would hardly be able to cover higher grocery bills. So, the government would have to step in and provide financial support for struggling households. This, in turn, would raise the burning issue of rising inflation. Earlier, the Bank of England said inflation could soar above 10% in 2022 to its highest level in 40 years.
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Published 19 May 2022
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