The protracted auction of Boots is at risk of falling apart as debt markets seize up and buyers grow nervy amid a consumer downturn (The Times £). Concerns over the long-running auction falling apart have emerged weeks after billionaire Mukesh Ambani teamed up with private equity to table a £5.5bn bid, with cash raised from investment banks but facing higher borrowing costs (The Daily Mail).

Shoppers are starting to switch to cheaper products as they feel the impact of rising living costs, according to supermarket chain Tesco (The Financial Times £). Sales at Tesco’s British and Irish stores have fallen as shoppers begin to trade down to cheaper basics, with Ken Murphy, the supermarket chain’s chief executive, warning that “customers are facing unprecedented increases in the cost of living” (The Times £).

As the Bank of England warns that inflation will hit 11% this Autumn in a squeeze on households not seen since the 1970s, there are signs that consumer behaviour is beginning to change, according to Tesco boss Ken Murphy. (Sky News)

Tesco boss Ken Murphy defended his mammoth £4.7million pay packet yesterday despite warning shoppers face ‘unprecedented increases in the cost of living’. (The Daily Mail)

The UK’s largest supermarket said it had gained market share from the other “big four” chains – Asda, Morrisons and Sainsbury’s – but sales in the three months to 28 May fell 1.5% on the same period last year (The Guardian).

City traders are betting on a squeeze at supermarket giant Asda as it grapples with a huge debt pile and a consumer slump. They are selling off parcels of the company’s corporate loans at a discount of almost a fifth. (The Daily Mail)

The highly leveraged £6.8bn takeover of Asda resulted in the supermarket paying £375.1m in interest last year, new accounts have shown. (The Times £)

The Queen’s favourite chocolate brand Rococo has changed hands in a snap deal with the group behind Illy coffee. The sale could breathe new life into the brand under Prestat Group, the confectionery arm of Italian firm Gruppo Illy. (The Daily Mail)

People struggling with the soaring cost of living are cutting back on food and car journeys to save money, according to a BBC-commissioned survey. More than half (56%) the 4,011 people asked had bought fewer groceries, and the same proportion had skipped meals. (The BBC)

Three years ago Ocado, founded as a market-changing online grocer, was officially reclassified as a technology business. Hopes were high that its share performance would benefit and that was the case for a stretch. Yet its unique mix of robots and retail have now become like kryptonite to investors. Ocado shares have tumbled by 56% in the past year, wiping out all its pandemic gains. (The Times £)

Scotland’s whisky producers face supply chain and interest rate rise hits. Distilleries had suffered a drop in revenues in the wake of Covid travel restrictions and Trump’s trade war. (The Financial Times £)

UK’s star chefs get creative to keep menu prices down. Faced with staff shortages, soaring food costs and rising pay, restaurants are trying out less expensive ingredients. (The Guardian)

The next operator of the National Lottery has identified ‘material weaknesses’ in its financial reporting that could increase chances of fraud. Allwyn Entertainment, owned by Czech billionaire Karel Komarek, warned investors of the threat in a recent report to the US Securities and Exchange Commission. (The Daily Mail)

The prime locations of London’s American Candy stores and the rapid growth of the sector has prompted questions about the business model. Concerns have been raised about the health impact of the sugary products and about the legality of some of the operators. (The Guardian)

Long-suffering shareholders of Matt Moulding’s The Hut Group must feel they are chasing rainbows, from promises of corporate governance changes to murmurs of private equity interest. THG has said it received a number of ‘unacceptable’ bids. But feel for the shareholders who have their own opinion about what is unacceptable at the group. (The Daily Mail)

Premier Foods is launching “new modern workplace policies” which include providing online training for all 4,000 staff on trans inclusivity and the menopause and how to cope with it. (The Telegraph)

The government cannot solve every problem or save every business amid the cost of living “storm”, a business minister has said as fuel prices hit record high. (Sky News)

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