CMA report shows grocery market is as competitive and efficient as ever
Responding to the CMA report released today, Helen Dickinson, chief executive of the BRC, said: “We welcome the CMA report which confirms that despite the challenges caused by rising costs throughout the supply chain, the grocery market remains as competitive and efficient as ever. Indeed, retailers have gone above and beyond to try and protect consumers from rising costs in the supply chain, with operating profits falling “significantly to below historic levels”.
“Supermarkets have been working hard to support their customers through the cost of living crisis and will be reflecting on the CMA’s recommendations on unit pricing. The CMA itself notes that “many of these problems stem from the rules themselves”, and retailers stand ready to support proposed changes to the unit pricing rules.
“As noted in the report, supermarket margins have remained extremely tight as they try to support their customers and absorb the worst of the rising costs in the supply chain. In the last few months, some of these pressures have begun to ease, such as with global commodity prices and the weakness of the pound, and we are now seeing competition driving down the price of key staples. This fierce competition between British supermarkets has also been a key reason why the UK continues to deliver among the cheapest groceries in Europe.”