Call for food price caps ‘completely preposterous’, says M&S boss
Summary
The chief executive of Marks & Spencer (M&S), Stuart Machin, criticized a government idea to set voluntary price caps on essential food items, calling it “completely preposterous.” He urged the government to reduce taxes and regulations instead, explaining that M&S already makes little or no profit on some basic products. M&S also revealed lower profits due to a cyber-attack and plans to invest in technology and new stores to support future growth.Key Facts
- M&S CEO Stuart Machin opposes government voluntary price caps on basic food items like milk and bread.
- He says M&S loses money on some essentials and only makes small profits on others.
- Machin suggests cutting taxes and regulations to help businesses instead of controlling prices.
- M&S faces extra costs from a new packaging tax (£40m), national insurance changes (£50m to £100m), and supplier price increases due to Middle East conflict.
- Profits dropped 23.8% to £671 million last year, partly because of a cyber-attack that cost £131.3 million.
- Food sales grew 7%, but sales in fashion, homewares, beauty, and international markets fell.
- M&S plans to invest in technology, automated distribution centers, and new food stores to boost growth.
- Analysts warn M&S profits may be lower than expected due to ongoing higher costs and government tax levies.
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