Sainsbury’s boss Simon Roberts calls for Budget to boost consumer confidence

Roberts told Reuters that even with falling inflation, rising wages and strong employment, UK consumer confidence was still gloomy and customers were nervous about spending.

“Discretionary markets continue to be difficult,” Roberts said.

“Consumers inevitably are wanting to be clearer about what’s going to happen next and for that reason, we see a continued caution in discretionary spending.”

To address this, Roberts said it was critical that the government delivers on its promise to fundamentally reform business rates, saying that Sainsbury’s pays almost as much tax on its properties as it makes in operating profit.

The most recent GfK consumer confidence survey shows it has plunged since prime minister Keir Starmer warned about the economy and of potential tax increases in the October 30 Budget.

This has raised concerns about potentially tricky trading conditions ahead of the crucial Christmas period at the end of the year.

“We need to see interest rates continue to come down because that directly impacts household spending. I think clarity in the budget, one way or another, is helpful,” said Roberts.

Despite the economic uncertainty, Roberts is confident the supermarket will deliver a strong Christmas.

“What we’ve seen over the last three or four years through the pandemic and the inflation crisis, Christmas has been a time when people want to be together with their friends and family and loved ones.

“There’s absolutely no complacency at all in our business. We’ve had three strong Christmases and we’re preparing for a fourth one to come,” he added.