Britain’s second largest supermarket has reported a fall in annual pre-tax profits as it revealed that it had spent more than £560 million on keeping its prices low over the past two years.
Yet profits, not wages and salaries, are the main culprit here. Globally, those companies producing essentials have been doing enormously well from soaring prices. The record profits of the fossil fuel companies are notorious. But research by the union Unite has shown that the profits of the four largest agribusinesses globally, less well-known names like Cargill and ADM, rose 255% from 2019 to 2021.
Those soaring prices have then been fed down the supply chain into domestic profiteering. The big three UK supermarkets – Asda, Tesco, and Sainsbury – doubled their profits over the same time period.