Sainsbury's boss warns of inflationary pressures on consumers

9th Oct 2013 14:18

Sainsbury's Chief Executive Justin King said British consumers are likely to have less disposable income this time next year as inflation continues to outstrip wage rises.While recent economic data has revealed an improving outlook for UK consumer spending, retailers are worried about how much of an impact rising prices will have on the market. "In 12 months time I think we'll be sitting here saying inflation's running at about 3% and average wages have gone up about 1%," King said at a grocery industry conference."So net on average a couple of per cent out of peoples' incomes. The reality is whatever happens, I think, in the economic backdrop, we're not going to see a sea change in the amount of money that consumers have to spend."His remarks come a day after industry data showed British retail sales growth eased for a second consecutive month in September. Sainsbury last week reported an increase in quarterly sales in line with market expectations. Results were driven by the strong performance of convenience stores and online sales.Shares fell 0.08% to 384p at 14:47 on Wednesday.RD