Remember me
The boss of Sainsbury's joined the backlash against Rachel Reeves' botched business rates reforms as he revealed shoppers flocked to his supermarket over Christmas.
With the Government preparing to announce a U-turn to help pubs facing a sharp increase in their tax bills, Simon Roberts said 'it's important that the system works as fairly as possible'.
'We've long campaigned for business rates reforms,' said Roberts. 'Pubs are a really important part of communities, just as shops are.'
His remarks came a day after the chief executives of Tesco and Greggs also said more needed to be done to help a host of firms – not just pubs.
Concern: With Government preparing to announce a U-turn to help pubs facing an increase in their tax bills, Simon Roberts said 'it's important that the system works as fairly as possible'
Tesco boss Ken Murphy said: 'I believe that the Government needs to look at the rate system overall and reform it properly.'
He called the rates system 'fundamentally unfair' and said that retail and hospitality pay a disproportionate amount of the property tax, with pubs and restaurants particularly hard hit.
And Roisin Currie, boss of Greggs, said: 'It is good that the Government have helped the high streets and have looked at ways to improve the system that was in place. However, I think there is still a fundamental reform needed in the long term.'
Roberts joined the criticism as Sainsbury's revealed strong food sales – boosted by an in-home dining boom that retail analysts say is being triggered by people cutting back on eating out to save money. But it followed rival Tesco in disappointing investors with its overall sales growth.
Sainsbury's, Britain's second biggest supermarket, saw total sales rise 3.3 per cent over the six weeks to January 3.
The group expects to return £800m to shareholders through a special dividend of £250m and a share buyback programme.
Worries for Argos after slumpA Christmas slump at Argos has raised fresh questions over its future.
Owner Sainsbury's revealed sales fell 2.2 per cent over the six weeks to January 3.
This compared with a 5.1 per cent rise at the company's grocery arm.
Chris Beauchamp, chief market analyst at IG, described Argos as an 'albatross' for Sainsbury's and said the poor results increased the likelihood of it being sold.
Richard Hunter, head of markets at Interactive Investor, said Argos 'remains something of a thorn in the side for the group as a whole'. The retailer has faced fierce competition from cut-price online retailers, including Shein and Temu.
It was the subject of a takeover bid by Chinese firm JD.com last year, but talks collapsed. Beauchamp said it is 'almost certain' Argos will attract another bidder.
'Sainsbury's has essentially hung up the 'for sale' sign over Argos after the chain spoiled a decent set of numbers for the supermarket's core business,' he said.
'The move to buy Argos looks increasingly like a wrong turn and an unnecessary distraction, especially when competition with Tesco over food sales is poised to heat up once more.'
Shore Capital analyst Clive Black added: 'Argos is a business that feels a bit of a square peg in a round hole.'
DIY INVESTING PLATFORMS
AJ BellAJ BellEasy investing and ready-made portfolios
Hargreaves LansdownHargreaves LansdownFree fund dealing and investment ideas
interactive investorinteractive investorFlat-fee investing from £4.99 per month
FreetradeFreetradeInvesting Isa now free on basic plan
Trading 212Trading 212Free share dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Compare the best investing account for you Share or comment on this article: Sainsbury's boss attacks business rates blunders
Comments (0)