Wednesday, November 6, 2024

Fear of tax rises is hurting sales, warns Sainsbury’s

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Sir Philip Hampton, the former Sainsbury’s boss, said at the time that Ms Reeves must adopt a more upbeat approach: “The more politicians are gloomy of course the more these sort of animal instincts are going to be constrained.”

The gloomy narrative set by Downing Street since coming to power has also weighed on manufacturers, with bosses delaying big investment decisions until later this year.

The S&P Global Purchasing Managers’ Index revealed earlier this week that confidence has fallen to a nine-month low among factory chiefs.

Such surveys have prompted Ms Reeves to strike a more optimistic tone.

In her speech at the Labour Party Conference last week, she said Britain’s “best days lie ahead”, adding: “My ambition for Britain knows no limits because I can see the prize on offer if we make the right choices now.”

Mr Roberts weighed into the political debate as Sainsbury’s gears up for the crucial festive period.

Speaking to Reuters on Wednesday, he said the supermarket giant had enjoyed “three strong Christmases and we’re preparing for a fourth one to come”.

Rival Tesco will provide its own market update on Thursday.

Sainsbury’s has recently been seeking to focus increasingly on its grocery business in an attempt to ward off competition from low-cost competitors Aldi and Lidl.

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