Helen Dickinson, KPMG’s head of retail comments on today’s interim results by retailers Tesco and Sainsbury:
“These results are really not surprising. With consumers’ incomes being squeezed from many quarters, sales volumes are declining. Shop food prices are now hovering at five percent higher than a year ago, reflecting the impact of commodity price pressures. For retailers this generates the 'double whammy' of challenging sales growth as well as margin pressure.”
“Food retailers, along with the rest of the sector, are doing all they can to respond.
“Consumers increased desire to purchase promotional products looks set to continue and they are also seeking to reduce the inflationary impact of their weekly shop by changing the mix of products purchased.”
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For further information please contact:
Katrin Boettger, Senior PR Manager
Tel: +44 207 896 4232
Email: Katrin.boettger@kpmg.co.uk
About KPMG:
KPMG LLP, a UK limited liability partnership, is a subsidiary of KPMG Europe LLP and operates from 22 offices across the UK with nearly 11,000 partners and staff. The UK firm recorded a turnover of £1.6 billion in the year ended September 2010. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. We operate in 150 countries and have more than 138,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity. KPMG International provides no client services.
