Tesco CEO Slams 'Greedflation' Claims as "Absolute Nonsense" Amid Soaring Profits

Tesco’s chief executive, Ken Murphy, has launched a robust defense of the supermarket industry, unequivocally dismissing accusations of "greedflation" as "absolute nonsense." Speaking out amidst a period of intense scrutiny over rising food prices, Murphy insisted that claims of supermarkets exploiting inflation for profit are "without foundation."

The supermarket giant recently announced a significant increase in its operating profits, which climbed from £2.63 billion to £2.76 billion in the past year.

However, Murphy emphasized that these figures do not reflect a pattern of profiteering at the expense of struggling consumers. Instead, he argued that supermarkets are making substantial efforts to "do the right thing" for their customers, employees, and suppliers, often at a significant cost to their own bottom line.

Murphy highlighted the substantial investments made by retailers to mitigate price increases for shoppers.

He pointed to a recent report by the Competition and Markets Authority (CMA), which, after a thorough investigation into the grocery sector, found no evidence to support claims of profiteering. This official endorsement, he stated, underscores the industry's commitment to fair pricing.

Detailing the financial realities of grocery retail, Murphy described supermarket profit margins as "razor thin," typically ranging from a mere 2p to 4p on every pound spent by customers.

He drew a sharp contrast with other sectors, such as energy and financial services, where profit margins are considerably higher, further emphasizing the unique challenges faced by food retailers.

Looking ahead, Tesco plans to double down on its commitment to affordability. The company has pledged to invest an additional £1 billion in price cuts over the next year, aiming to ease the burden on household budgets.

Furthermore, in recognition of their vital contribution, Tesco is also set to implement a pay rise for its staff, demonstrating a holistic approach to supporting both consumers and colleagues during challenging economic times.

Murphy's forthright statements aim to reshape the public narrative, asserting that far from contributing to "greedflation," supermarkets are on the front lines, actively battling the rising cost of living while striving to maintain accessible prices for everyone.