Sainsbury and Iceland both reported a slump in sales as a result of food deflation and increasing competition, with Sainsbury’s sales falling 0.6% in the last quarter.
Iceland also blamed changing consumer habits for its 4.4% drop in sales to £2.69bn.
Jobs cuts
There was bad news for jobs at Müller Dairy, with the firm entering a 30-day consultation on 43 jobs at its Market Drayton factory in Shropshire.
Bad Week
During the week, Premier Foods boss Gavin Darby hailed its controversial pay-to-stay scheme a success for halving the number of the manufacturer’s suppliers. Offering little comfort for those delisted.
Premier Foods also reported sales up in both volume (9%) and value (3.3%) for the 52 weeks to April 4 2015. However, its trading profit was still down £8.9M on last year to £131M.
Positive news
There was positive news for jobs and investment from one manufacturer, as sauce firm BD Foods created 40 new roles and installed two new production lines thanks for a £240,000 loan from Lloyds Bank.
Morrisons reported it was slashing a third off 200 of its ‘everyday’ items as part of the troubled retailer’s boss David Potts’ plan to reverse its fortunes.
Meanwhile, in this week’s Good Week/ Bad Week we also un-package the pros and cons for food and drink businesses should the UK leave the EU, according to the views of Farm Europe.