British supermarkets cleared of profiteering but could do more on prices

Operating profits in the UK grocery sector fell by 41.5% last year, while average operating margins narrowed from 3.2% to 1.8% as retailers’ costs rose faster than revenues

The UK competition regulator is investigating grocers after food prices soared and supermarkets faced accusations of profiteering. 

Britain’s competition regulator has cleared the country’s biggest supermarkets of profiteering from high food costs, but said some retailers were not doing enough to allow customers to compare product prices.

The Competition and Markets Authority said that operating profits in the grocery sector fell by 41.5% last year, while average operating margins narrowed from 3.2% to 1.8% as retailers’ costs rose faster than revenues. This indicated that costs have not been passed on in full to consumers, the body said.