It comes two days after the UK’s second largest chain reported a 9.8% bounce in gross sales for the newest quarter and highlighted that meals inflation is “starting to fall”.
The UK competitors watchdog is investigating grocery retailers within the face of accusations they may very well be profiteering from costlier foods and drinks.
Latest figures from the Office for National Statistics (ONS) present meals inflation eased barely in May however remained at 18.4%.
On Monday, the Competition and Markets Authority (CMA) additionally mentioned it had discovered that drivers paid almost £1 billion extra for gas at supermarkets final yr resulting from elevated margins.
In response, power and internet zero minister Grant Shapps mentioned: “We’ll shine a light on rip-off retailers to drive down prices and make sure they’re held to account by putting into law new powers to increase transparency.”
At the retailer’s AGM on Thursday, the grocery store group’s chairman Martin Scicluna defended the trade.
“To be very, very clear, we are not profiteering and we are not rip-off retailers,” he mentioned.
“We make 3p on every pound we sell. If we offered you something for £1, and I said I made 3p on that product, I don’t think you would call us a rip-off merchant or a profiteer, but some MPs have.”
The grocery store highlighted that it has lower costs on 120 necessities akin to bread, butter, milk and pasta as wholesale prices have eased, with £60 million invested into worth reductions since March.
Shareholders met to vote on a collection of things, together with the pay bundle for firm executives.
The remuneration consists of an virtually £5 million deal for chief government Simon Roberts.
The CEO since 2020 noticed his general pay deal for the yr to March rise by greater than £1.4 million to £4.947 million, resulting from virtually £4 million in bonuses.
After questioning from shareholders, Mr Scicluna mentioned he supported the bundle.
He mentioned: “What we are trying to do is focusing on rewards for Simon, the operating board, senior leadership and colleagues. That’s why our colleague pay has gone up 44% over the past four years.
“It is a lower fixed pay, around 19% of the total, but we incentivised Simon and the team with the bonus and LTIPs (long-term incentive payments) to make sure that we grow profits, because it is good for the company and means we can invest in innovation, technology and reward shareholders.
“All this is balanced and we try to do it in a proper way – because it comes through the board, I stand by it completely.”
