WQ93693 (w) Tabled on 07/08/2024

What assessment has Welsh Government made of a) how much of their income Welsh people spend in supermarkets every month; and (b) of supermarkets' profit in Wales?

Answered by Cabinet Secretary for the Economy, Transport and North Wales | Answered on 16/08/2024

The cost-of-living crisis and mishandling of the UKG budget resulted in sustained inflationary pressures which have impacted how much is spent each month in supermarkets.  The inflation rate has lowered since its highest in 2023 though prices continue to rise, albeit at a slower rate.

The Welsh retail sector is not divorced from the UK sector, and we do not keep track of retail profits specifically for Wales. There is the added complexity that retail does not have hard boarders with many Welsh consumers shopping online and in stores which are outside of Wales. 

The CMA published a report in July monitoring the Competition and profitability in the groceries sector which reports that the aggregate food price inflation has fallen consistently, from a high of 19.1% in March 2023 to 1.5% in June 2024 and that effective competition was ensuring continued pressure on retailers to pass on cost savings to their customers. However, they recognise that the cost of groceries has increased and are likely to continue to remain elevated.