Question to the Department for Environment, Food and Rural Affairs:

To ask the Secretary of State for Environment, Food and Rural Affairs, what assessment she has made of trends in the level of profits earned by large supermarket chains during the rising cost of living.

Defra has regular discussions with food retailers about a range of issues, including the impact of food price inflation. UK supermarket profit margins have historically been low with their business model relying on increasing volumes, not margins, to increase profits. Recently discount retailers, who aim to keep prices low and increase their market share, have pressured margins even further.

Profit margins were around 3% in 2021. Recently, prices have increased throughout the supply chain. ONS data provides no evidence that recent increases in consumer food price inflation have been disproportionate compared to increases in input prices paid by food manufacturers or producer prices paid by retailers. We have no reason to believe that supermarket profit margins have significantly increased recently but Defra remains interested in the trends emerging from data released by the sector.