// Ocado CEO Tim Steiner said grocery prices are “more affordable” than they were a year or even two years ago
// He said the main problem is that customers are now forced to pay extra for their energy bills and fuel
Ocado co-founder and chief executive Tim Steiner has said that the current grocery prices are “more affordable” than they were a year or even two years ago.
The grocery boss told Shoptalk Europe: “It’s a very challenging environment because you read in the newspapers all the time about how grocery prices are going up and how are people going to feed their families, but grocery prices are up less than wage inflation at the moment.”
Steiner said that customers were under pressure because of soaring bills elsewhere, such as energy and fuel.
READ MORE: Ocado sales drop further as it warns on cost-of-living crisis
“That’s not costing 5% more,” he said, adding that the recent price rises are “costing customers around 300% more”.
Steiner said Ocado was facing soaring cost increases, such as increased electricity costs, a “dramatic” rise in gas prices, and said that suppliers are “trying to push through larger price increases”.
The grocery market has become increasingly price competitive of late as the big four ensure shoppers are not tempted by the discounters.
Both Tesco and Sainsbury’s are investing in price and run Aldi Price Match campaigns. Meanwhile Asda and Morrisons have recently launched new price cut initiatives on essential items.
On price, Steiner said: “”We’re more of a price follower than a price leader in the UK market, because we’re a £2.5 billion a year retailer in a £185 billion market.
“We always make sure that we’re price competitive. We’re offering great value to our customers, not just through pricing but also through the quality of our service, through the freshness of the food and through the wide variety.”
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