Responding to the CMA’s cost of living update, which includes updates into its investigations into grocery retailers, Helen Dickinson, Chief Executive of the British Retail Consortium, said:

“We welcome the CMA update, which once again shows that supermarkets are doing their best to provide great value groceries for their customers. With food inflation now returned to normal levels, fierce competition between retailers is ensuring customers are the big winners from the UK’s supermarket sector.

On Competition and profitability in the groceries sector:

“The CMA notes the sharp decline in food inflation, which has fallen significantly to just 1.5% in June 2024, below the level of headline inflation. While operating profits have recovered slightly from the historically low levels seen in 2022/23, they remain in line, or below levels seen before the cost of living crisis. The CMA recognises the ‘effective competition’ between retailers is keeping prices as low as possible for customers and ensuring that where retailers can make cost savings, these are passed on to customers. This competition is one of the key reasons why the UK continues to deliver some of the cheapest groceries in Europe.

On Loyalty Card Pricing:

“We welcome the CMA’s update that they have not found widespread evidence of misleading loyalty promotions. Whether it’s everyday value, or loyalty schemes discounts, retailers know they have to demonstrate clear value to attract and retain customers.

On Road fuel update:

“The fuel market covers both supermarkets and non-supermarket fuel retailers. Supermarkets remain focused on delivering the best overall value for their customers across all products that they sell, including food and petrol. Retailers will continue to work closely with the CMA and provide the necessary data to allow consumers to find the best prices for petrol and diesel.”

Notes:

• On Groceries competition and profitability update, the CMA writes: “Overall, consistent with our July 2023 update, this update does not find evidence that groceries inflation is being driven at an aggregate level by weak competition between retailers. This should provide consumers with reassurance that effective competition is ensuring continued pressure on retailers to pass on cost savings to their customers.”
• On Loyalty cards update, the CMA writes: “Our analysis – involving tens of thousands of loyalty price promotions – is ongoing, but the results to date suggest we are unlikely to identify widespread evidence of loyalty promotions that mislead shoppers in this way.”
• On Road Fuel update, the BRC does not generally handle enquiries on petrol. For more information please reach out directly to fuel retailers, or to the Petrol Retailers Association.