By Greg Wright

Published 6th Jul 2023, 14:58 BST

The company also defended increased pay packages for its senior executives at its annual general meeting in London, despite the continued cost-of-living crisis.

It comes two days after the UK’s second largest chain reported a 9.8 per cent jump in sales for the latest quarter and highlighted that food inflation is “starting to fall”.

The UK competition watchdog is investigating grocery retailers in the face of accusations they could be profiteering from more expensive food and drink.

Bosses at Sainsbury’s have said they are “not rip-off retailer” or “profiteers” as they defended the profit made by the retailer amid scrutiny related to food inflation over the past year.

Latest figures from the Office for National Statistics (ONS) show food inflation eased slightly in May but remained at 18.4 per cent.

On Monday, the Competition and Markets Authority (CMA) also said it had found that drivers paid nearly £1 billion more for fuel at supermarkets last year due to increased margins.

In response, energy and net zero minister Grant Shapps said: “We’ll shine a light on rip-off retailers to drive down prices and make sure they’re held to account by putting into law new powers to increase transparency.”

At the retailer’s AGM on Thursday, the supermarket group’s chairman Martin Scicluna defended the industry.

“To be very, very clear, we are not profiteering and we are not rip-off retailers,” he said. “We make 3p on every pound we sell. If we offered you something for £1, and I said I made 3p on that product, I don’t think you would call us a rip-off merchant or a profiteer, but some MPs have.”

Shareholders met to vote on a series of items, including the pay package for company executives.

We are not rip-off retailers, says Sainsbury’s bosses at annual meeting