Helen Dickinson, KPMG’s Head of Retail comments on today’s interim results by retailers Tesco and Sainsbury:
“These results are really not surprising. With consumers’ incomes being squeezed from many quarters, sales volumes are declining. Shop food prices are now hovering at five percent higher than a year ago, reflecting the impact of commodity price pressures. For retailers this generates the 'double whammy' of challenging sales growth as well as margin pressure.”
“Food retailers, along with the rest of the sector, are doing all they can to respond."
“Consumers increased desire to purchase promotional products looks set to continue and they are also seeking to reduce the inflationary impact of their weekly shop by changing the mix of products purchased.”
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This article represents the views of the author only, and does not necessarily represent the views or professional advice of KPMG in the UK.