Sainsbury’s warns household budgets to get tighter

Pressure on household budgets is set to increase over the rest of the year, the boss of supermarket chain Sainsbury’s has said.

Households have been struggling with the cost of living as energy, food and fuel bills soar.

Sainsbury’s chief executive Simon Roberts said the chain was “doing everything we can to keep prices low”.

The government has been putting pressure on firms including retailers to cut costs for customers.

Sainsbury’s said like-for-like sales had fallen 4% in the 16 weeks to 25 June compared with the same period last year.

Last month, a BBC-commissioned survey suggested that people were cutting back on food, fuel and clothes as prices rise.

Mr Roberts said: “We really understand how hard it is for millions of households right now and that’s why we are investing £500m and doing everything we can to keep our prices low, especially on the products customers buy most often.”

“The pressure on household budgets will only intensify over the remainder of the year and I am very clear that doing the right thing for our customers and colleagues will remain at the very top of our agenda,” he added.

Retailers and other businesses have been under pressure from the government to cut prices.

But small firms said the plans were a “slap in the face” saying they had “already cut all expenses, even necessary ones, to the bone.”