Morrisons CEO: Higher prices are coming due to lorry driver shortage
The boss of supermarket giant Morrisons has warned of pressure on prices due to the lorry driver shortage and higher costs.
The takeover target – which is at the centre of a bidding battle between two US private equity firms – said it expects industry-wide retail price inflation in the coming months as a result of the HGV driver shortage, global commodity price increases and higher haulage costs.
But it said it will seek to reduce the impact of the cost pressures and supply issues to keep its shelves stocked.
Price inflation
Chief executive David Potts said the group had seen price inflation start to come through over the past month, which is set to “continue for a while”.
This has impacted the price of beef and wheat-based items, while he added there was pressure on supplies of items such as pet food amid surging pet ownership during the pandemic.
He said: “Pet food has been quite short, as well as fizzy drinks, bottled water, crisps and some wines.”
But he said that as Britain’s biggest single food-maker, Morrisons is better able to secure supplies and is offsetting price rises in some areas, with cuts on a raft of other products.
“We’re not immune, but we’re more in control of the train set,” he said.
The chain is also resorting to using its own lorries to pick up stock from suppliers struggling amid the driver shortage.