Supermarkets will be scrutinised this week for any sign they may be profiteering from rising prices. On Tuesday, Morrisons’ boss David Potts will be among supermarket bosses questioned on the causes, and likely trajectory, of food and fuel prices inflation by MPs on the business committee (The Times £). Jeremy Hunt will ask industry regulators what they are doing about any companies exploiting rampant inflation by raising prices (The Guardian).
Carlsberg has reached an agreement to sell its business in Russia more than year after the brewer announced its intention to dispose of the assets following Moscow’s invasion of Ukraine. (Financial Times £)
The high-end confectioner Hotel Chocolat has warned that it will sink to a loss this year because reining in costs after a rapid expansion during the pandemic has been harder than expected (The Times £). Hotel Chocolat served up its second profit warning in two months against a sour backdrop of sky-high inflation and wage and cocoa costs. It even had a rotten Easter with sales ‘lower than expected’. (Daily Mail). There was a surprise rise in retail sales last month despite inflationary pressure and rising borrowing costs, official figures show (Sky News).
Brussels plans to lift controls on some genetically modified crops to help farmers cope with climate change in a move likely to reignite a Europe-wide debate about the controversial techniques. (Financial Times £)
The UK arm of Whole Foods Market, Amazon’s upmarket organic supermarket chain, crashed to a record loss last year as inflation sapped demand and drove up costs. Read The Grocer’s story on Whole Foods’ accounts. (Times £)
Alex Brummer in the Mail says it would be tech vandalism if Ocado were sold to Amazon, or any overseas predator. “Our politicians, asset managers, and those who genuinely believe that the UK could be its own Silicon Valley, should be greatly troubled by the unstable rally in Ocado shares. It doesn’t very much matter whether the suitor turns out to be Amazon or anyone else.” (Daily Mail)
UK retail sales rose unexpectedly last month as warmer weather and bank holidays boosted spending on summer clothes, DIY and gardening despite the squeeze on households (The Times £). Warmer weather and online bargains drove a surprise increase in retail sales in May after City forecasts predicted the cost of living crisis would persuade consumers to be more restrained (The Guardian).
Cannabis group Love Hemp is eyeing a return to the stock market later this year, after being rescued out of administration in February by Portillion Capital. (Daily Mail)
Boots ready to prove once again it is the right fit for Walgreens. Less than a year has passed since the American owner of Boots shelved plans to sell Britain’s biggest high street chemist. Walgreens Boots Alliance described the chain as “nice to have” this year amid renewed questions around its commitment. (The Times £)
New research by Ethical Consumer magazine shows that the three main toilet paper brands have cut the amount of recycled paper in their tissues. It said the use of virgin wood pulp was fuelling deforestation, although paper-industry advocates dispute this. (The Guardian)
Groceries delivered by Sainsbury’s were found to have the shortest average time left before their use-by dates, according to the items received by a team of 12 Which? mystery shoppers located around the UK. (The Guardian)
There are beneficiaries from hybrid working: high streets outside the central London district known as zone one. Retail vacancy rates have improved compared with 2019 in locations such as East Ham and Dalston in east London, Kilburn in the north and Chiswick in the west, according to property group Savills. Food and drink retailers especially want to expand out of town to reach more homeworkers, according to Marie Hickey, Savills’ director for commercial research. (Financial Times £)
St Austell shrugs off hangover from Covid. Total revenue for the 2022 financial period reached £209m, up 34% on 2021 and 10% better than the £190m of pre-pandemic sales. (The Times £)
Nine out of ten businesses are halting growth plans because of problems accessing capital, forcing almost a quarter to scale back expansion or make redundancies. (The Times £)
Activist investors have launched a fresh attack on the parent company of Wagamama after its finance chief stepped down and its share price plunged by 20% in one month. (Telegraph £)
Artificial intelligence can’t taste or smell - at least not yet - but it is now increasingly helping people buy a decent bottle of wine. (BBC)
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