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Telegraph: Sainsbury's Energy Bill Rises £75m.

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'Sainsbury's energy bill rises £75m':


J Sainsbury tried to calm fears that it would be forced to pass on escalating energy costs to shoppers, after its chairman suggested the company could not absorb all of its hefty fuel bills.

Finance director Darren Shapland said: "We know that if we lower prices, sales go up. If we increased prices we'd lose momentum and traction and we're not going to do that."

The supermarket was warning that its energy bill had tripled, increasing £75m, as a four-year, fixed-price contract came to an end.

Mr Shapland's comments came just moments after the chairman Philip Hampton warned that rising energy bills were a serious threat.

Mr Hampton said: "It's hitting all businesses. The question is, do businesses contract or do they get it passed on as inflation? And when you look at supermarkets, you're looking at businesses with very thin margins."

Sainsbury's operating profit margin edged up last year from 2.07pc to 2.24pc.

The company later tried to smooth out any contradictions between the two positions, but Mr Hampton made it clear that if higher costs weren't passed on, "retail profit margins will be hit".

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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