Simon Roberts, the chief executive of Sainsbury's, has called on the incoming Prime Minister to reduce energy levies and employer costs for the food industry. Roberts urged the next leader, identified as Andy Burnham, to engage with businesses like Sainsbury's to "reduc[e] those levies and costs on energy that the food industry faces."
These remarks come as Sainsbury's reported an encouraging start to the year, with sales rising 3.1 percent to £8.0 billion in the 16 weeks leading up to June 20, 2026. However, Roberts cautioned that the ongoing conflict in the Middle East continues to create uncertainty for shopper confidence and the business, leading consumers to curb spending on non-essential items.
Firms within the food industry incur additional costs to fund government energy policies, such as the development of nuclear power stations and the maintenance of the national power grid. Roberts noted that "many other heavy-use industries don't face the same issues," implying that sectors like steel and chemical manufacturing receive greater subsidies for their energy consumption.
Roberts also highlighted the cumulative impact of rising costs under the current government, including increased National Insurance contributions, business rates, and minimum wage hikes. He expressed a desire for policies from the next Prime Minister that foster confidence and optimism to support customers. He suggested that the next administration should refrain from further increasing employer costs to allow companies to invest, stating a need for "a real focus on growth."
Sainsbury's maintained its profit forecast for the current financial year, projecting underlying operating profit between £975 million and £1.01 billion. Food sales increased by 3.6 percent to £7.6 billion, driven by seasonal products like berries and barbecue items. However, sales in non-food categories, including general merchandise and clothing, declined by 3.7 percent, and Argos sales fell by 0.5 percent.
While sales of pricier items such as furniture have been challenging, Roberts indicated optimism regarding food inflation. He suggested that inflationary pressures stemming from the conflict in Iran may be "less than forecast" as the year progresses. This comes amid a previous forecast from the Food and Drink Federation that projected food inflation could reach up to 10 percent by the end of 2026.
Roberts also noted the positive impact of the World Cup on sales of items like ice cream and large televisions. Sainsbury's shares rose 2.25 percent on the day of the report and have climbed 11.5 percent over the past year, though they lag behind competitor Tesco's 15 percent increase over the same period.