Sainsbury's issues warning to shoppers heading to supermarket checkouts

Sainsbury's says Budget changes from the new Labour Party government will "push up" the price of food amid the Cost of Living crisis as we head deeper into 2025.
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Sainsbury's has issued a warning to shoppers over the price of food rising. Sainsbury's says Budget changes from the new Labour Party government will "push up" the price of food amid the Cost of Living crisis as we head deeper into 2025.

Sainsbury’s still plans to open more stores but will have to be ‘very thoughtful about where we hire’ because of the higher costs. “It is coming at us fast in a way that was unexpected and will bring inflation as a result,” Simon Roberts, the chief executive of Sainsbury’s, said of the unexpected changes to NICs, which will add £140m to the Sainsbury’s wage bill from April.

While the retailer is sticking to plans to open more than 20 more supermarkets as well as new convenience stores, Roberts said Sainsbury’s would have to be “very thoughtful about where we hire” as a result of the higher costs.

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Mr Roberts said Sainsbury’s would do “everything we can” to head off price rises for its customers. Mr Roberts said: “This Christmas customers shopped later than ever. The Sunday and Monday [before Christmas Eve] were really huge days.”

The chain expects to deliver full year Retail underlying operating profit in line with consensus and the midpoint of our £1,010-£1,060 million guidance range, representing growth of around seven per cent. This reflects continued operating leverage from Sainsbury’s grocery volume growth, strong growth in Nectar profit contribution and delivery of cost saving targets.

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Sainsbury's also said it now expects a total Financial Services underlying operating profit to be around £30 million (previous guidance: between £15 million and £25 million). "We continue to expect to generate Retail free cash flow of at least £500 million," the retailer said.

Sainsbury’s will announce its Preliminary Results for the year ending 1 March 2025 on 17 April 2025.