Co-operatives warn that the UK supply chain crisis will push up prices and put pressure on profits

Co-operatives have warned of rising food prices and pressure on annual profits from rising supply chain crises that have turned into six-month losses.

Group CEO Steve Murrells said the rise in supermarket prices “comes” as retailers across the UK struggle with a shortage of heavy truck drivers, rising shipping costs and rising global commodity prices. “I told PA news agency.

He said the company aims to offset cost pressure “as much as possible,” but told customers that “some of it is filtered.”

Member-owned groups that also offer funerals and other services earn £ 15m ($ 77.8m) annually in the six months to July 3rd, compared to £ 15m ($ 77.8m). Reported a potential pre-tax operating loss in dollars). Previously, we were hit by product availability issues and the ongoing impact of a pandemic.

“Unplanned supply chain challenges and ongoing COVID-19 costs will bring higher levels of uncertainty,” he warned.

“This will put pressure on previously expected levels of profitability at the end of the year,” he said.

Supply chain problems will worsen in the coming months, as food retailers prepare for the peak Christmas season.

Murrells said this could affect the extent of some celebrations, but shoppers “may not be able to get turkeys of all sizes, but for Christmas You can get turkey for your meal. “

“We are in the midst of a storm and everyone is trying to find short-term, medium-term, and long-term solutions to this,” he added.

Six-month results show that food sales in the supermarket sector, excluding fuel, fell 2.8% in the first half of the year, compared to the surge in transactions of the previous year in the early stages of the pandemic.

The result is that the co-operative has announced a new partnership with Amazon, accelerating robot delivery from more than doubling online sales to £ 200m ($ 278m) by the end of the year.

However, he faced criticism from the GMB trade union over the move to partner with Amazon, which is under pressure over workers’ rights and the amount of tax to pay.

Murrells said: “Amazon wants to be a force for social gain.

“But it’s a challenge. Customers and members tell us if we’ve done the right thing.”

According to the Group’s results, funeral business sales fell 7% as the number of funerals plummeted 17% following a decline in mortality since March last year.

In other regions, legal services revenue increased 5% to £ 20m ($ 27.8m).

Holly Williams