Morrisons has warned it expects “industry-wide” price rises ahead and revealed some product shortages while reporting half-year results showing a 43% slump in profits (Sky News). Morrisons said it expected food price inflation in the second half of its financial year but would look to mitigate some of the impact using its food manufacturing capability (The Financial Times £).

Morrisons saw profits collapse by 37.1% in the six months to August 2021 as the cost of managing the coronavirus pandemic continue to weigh on the supermarket group. (The Daily Mail)

The boss of Morrisons says he has no concerns about the supermarket group falling into private equity hands as the £7bn battle for control of the chain edges towards its climax. (The Times £)

Morrisons will slash sick pay for unvaccinated workers if they need to self-isolate, as part of the supermarket’s efforts to rein in costs (The Telegraph). Morrisons is cutting sick pay for unvaccinated workers who need to self-isolate, as the UK’s fourth largest supermarket tries to pare back the “biblical costs” of the pandemic after a slump in profits (The Guardian).

“Despite results, white-flag brigade in Morrisons board, who surrendered without a real fight, have been doing a good job with grocer,” writes Alex Brummer in The Mail. “As chairman, Andy Higginson could rescue his reputation and really ensure the future by demanding that pledges, such as retaining all freehold properties and production centres, are legally binding. This would give the Takeover Panel the right to take the buyers to court if stipulations were breached. That might lead the buyers to retreat in horror.” (The Daily Mail)

EG Group, one of the world’s largest independent gas-station and convenience-store chains, is exploring options including a possible sale, according to people familiar with the matter (Bloomberg £). EG group, the Issa brothers’ petrol station and convenience-store chain, may put itself up for sale with a price tag of $15bn (The Times £). The billionaire Issa brothers, who own Asda, are considering selling their forecourt empire EG Group in a deal that could value the company at $15bn (The Telegraph).

Costa Coffee is banking on a busy festive period after revealing plans yesterday to recruit more than 2,000 new workers nationwide (The Times £). Costa Coffee is increasing pay for its 14,500 shop workers by 5%, as it looks for 2,000 more staff before Christmas (The Guardian). Costa Coffee has said it will increase pay by 5% for the 14,500 staff working at its stores across the UK (Sky News, The BBC).

McDonald’s has said it is to start selling a vegan burger in the UK and Ireland after years of research to perfect it. The McPlant burger will be trialled in 10 Coventry restaurants from late September and go national next year. (The BBC)

Shoppers can expect to pay more for their pasta in coming months amid shortages of its key ingredient following a disastrous growing season. A scramble for durum wheat has pushed the price up nearly 90% this summer after drought and soaring temperatures hit farms in Canada, one of the biggest producers. (The Guardian)

Genus was one of the FTSE250’s biggest fallers after the pig and cow breeder warned that ‘volatility’ in its key Chinese market meant it was likely to fall short of growth targets. (The Daily Mail)

Staff shortfalls and supply chain problems are likely to cause the UK’s economic recovery to weaken in the coming months, a major business trade group has cautioned (The Daily Mail). Coronavirus measures that forced scores of workers to self-isolate contributed to a bigger than expected slowdown in economic growth in July, according to the UK’s largest business lobby group (Sky News).

Amazon has offered to cover the cost of college tuition of all 750,000 of its frontline workers in the US. It comes as the online shopping giant struggles to attract and retain staff amid an industry wide labour shortage. (The BBC)

The news this week that French winemakers will produce 29 per cent less this year than last, thanks to spring frosts followed by summer rains, is more sobering evidence of the impact of climate change on the industry. It follows floods in Germany, a scorching heatwave across southern Europe, and drought in California. (The Financial Times £)

Uzbekistan’s supermarket sector is set for fast growth. With a population of 34m and rising, and a shopping culture that is shifting from the traditional eastern bazaar to online deliveries, Central Asia’s biggest grocery market is expected to boom in years to come. (The Financial Times £)

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