Sainsbury's issues warning to shoppers visiting UK stores 'from April 2025'

Sainsbury's has issued a warning over Chancellor Rachel Reeves' Budget. Sainsbury's - which is rivalled by Tesco, Asda, Morrisons, Aldi, Lidl and more - has warned Budget changes coming in April could mean shoppers face price rises and hikes at the tills.

Sainsbury Chief Executive Officer Simon Roberts told reporters on a conference call that it is already clear that inflation is building up and rising fastest in fresh food. “There’s no doubt — as everyone in the industry has said — that this is coming at us fast in a way that was unexpected, and it will bring inflation,” he said.

Mr Roberts said Sainsbury’s would do everything it could to head off price rises for its customers as part of existing plans to cut £1bn in costs through more efficient operations, including more automated tills and “SmartShop” devices that allow customers to scan items direct from the shelves.

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Mr Roberts said: “This Christmas customers shopped later than ever. The Sunday and Monday [before Christmas Eve] were really huge days.” That helped boost grocery sales by 3.8% in the six weeks to 4 January, while sales at its Argos stores rose 1.1% in that period.

Sainsbury’s said it had gained market share over Christmas, with sales of fruit, vegetables, meat, fish and poultry all doing particularly well. Customers spent 16% more on the retailer’s premium Taste the Difference range, while clothing sales rose 2.2% in a declining market.

Analysts at Jefferies said they did not expect a wider upgrade as Sainsbury’s had displayed “a familiar pattern: strong grocery performance offset by a weaker-than-expected Argos”. Prices in UK shops for both food and non-food items fell by 1% in the first week of December, according to the BRC-NielsenIQ shop price index. The move was driven by retailers offering discounts to attract sales in their Black Friday deals.

Food prices were 1.8% higher in December compared with a month earlier, according to the index. There were lower prices for non-food goods such as clothing and homeware, which fell by 2.4%, the highest rate of deflation since April 2021.