Sainsbury’s CEO, Simon Roberts, has called for the UK budget action to boost consumer confidence. Roberts has stated that Brits hit by the cost-of-living crisis are unlikely to resume strong spending until the new Labour government sets out its tax and spending plans, and interest rates fall further.
“Consumers inevitably are wanting to be clearer about what’s going to happen next and for that reason we see a continued caution in discretionary spending,” said Roberts.
Roberts shared his thoughts that even with falling inflation, rising wages, and strong employment rates, UK consumers are still nervous to buy larger items.
Recent surveys show UK consumer confidence has plunged since Prime Minister Keir Starmer’s warnings about the economy and potential tax increases in the 30 October budget, raising concerns about trading conditions ahead of the key Christmas period.
Sainsbury’s has a more than 15% share of Britain’s grocery market, behind market leader Tesco, but a quarter of Sainsbury’s sales are from non-food products versus about 7% for Tesco, making it more vulnerable to a broader downturn.
Despite the economic uncertainty, Roberts is confident that Sainsbury’s will deliver a strong Christmas.
“What we’ve seen over the last three or four years through the pandemic and the inflation crisis, Christmas has been a time when people in the end want to be together with their friends and family and loved ones,” said Roberts.