Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Tesco to lead the way on supermarket price cuts by leaning on suppliers

by July 17, 2023
July 17, 2023
Tesco to lead the way on supermarket price cuts by leaning on suppliers

Tesco is pushing suppliers to pass on savings from falling costs as Britain’s biggest supermarket sets out to cut prices more aggressively than its rivals.

In a presentation to its grocery suppliers on Thursday, Tesco characterised the market as moving from “inflation to deflation” and made clear it intended to lead on price cuts.

Tesco, led by chief executive Ken Murphy, included charts showing a 50 per cent drop in wholesale electricity prices, a 22 per cent drop in plastic PET packaging prices, and an 84 per cent fall in the cost of freight over the past year.

Suppliers remarked that Tesco was being selective, pointing out that other costs, notably wages, are still rising.

Supermarket chiefs have been stung by recent accusations of profiteering. Asda’s co-owner, Mohsin Issa, has been summoned by MPs for questioning this week, and he has written to them in advance to say he expects food inflation to ease further during the UK’s summer growing season. Issa warned, though, that fixed-term contracts mean it will take three to nine months for falling prices to feed through to consumers.

Food prices rose 18.4 per cent in the year to May, according to official figures, and researcher IGD forecasts that food inflation will decline to only 9 per cent by the end of the year, calling labour shortages the industry’s Achilles’ heel.

David Sables, boss of Sentinel Management Consultants, noted that Tesco is “pressuring” suppliers to lower prices amid a review of its entire fresh and packaged- grocery ranges. “Suppliers who don’t play ball will not fare well in the range reset.”

A Tesco spokeswoman said: “We’re working … with suppliers to mitigate the impact of inflation as much as we can, particularly as some commodity and input prices begin to fall. When we see opportunities to pass on savings to customers, we’ll take them.“

Read more:
Tesco to lead the way on supermarket price cuts by leaning on suppliers

0
FacebookTwitterGoogle +Pinterest
previous post
Sharp rise in companies collapsing as costs soar
next post
Parcel thefts rise from doorsteps as gangs follow courier vans

You may also like

Unveiling the Secrets of Success with Charlie Day,...

March 22, 2024

Jonathan Reynolds to push for UK steel tariff...

March 18, 2025

Elon Musk announces he will step down as...

December 21, 2022

UK opts to pay with phones as the...

June 27, 2023

Gambling Commission seeks settlement with Richard Desmond over...

November 28, 2024

Easyjet unveils “roadmap to net zero” by 2050...

September 27, 2022

Charting the Course: SMEs and the UK Vape...

January 19, 2024

UK interest rates remain at 16-year high of...

May 9, 2024

The impact of instant data on workplace efficiency...

March 13, 2025

Recession avoided as UK steams ahead of Europe...

March 14, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025
    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

      June 7, 2025
    • Call with China’s Xi, and Trump-Musk exchange fueled barbs during 20th week in office

      June 7, 2025
    • Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,568)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved