Nov 17, 2016
Tesco boss warns suppliers against price rises
Tesco chief executive Dave Lewis has warned suppliers against using the plummeting pound as an excuse for illegitimate price increases, even as he conceded that "Inflationary pressure" was increasing the price Britons pay for staple foods such as pork. Britain's biggest grocery chain emerged victorious last month from a public battle with Unilever, after the consumer products group had tried to impose a 10 per cent price increase on some of its goods. Tesco, he added, would only increase prices where it saw evidence of a "Legitimate" cost increase that could not be avoided, for instance with a change of recipe. Mr Lewis warned "Multinational businesses" - such as Unilever, where he worked for 28 years before joining Tesco in 2014 - not to ask British consumers to pay "Inflated prices in order that their reporting currency is maintained". "[Investors] don't devalue the stock because of that," Mr Lewis said, urging suppliers to see the sharp depreciation in sterling in a similar light.
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