Latest news with #HendersonGroup
BBC News
4 days ago
- Business
- BBC News
Food prices remain 'stubbornly high' in Northern Ireland as inflation rate rises
There will be "no respite for the consumer" in Northern Ireland as a grocery business warns food prices will remain stubbornly high this comes as official figures show food and drink prices rose by 4.5% in the 12 months to June. That is the highest rate since February 2024 but is well below the peak seen in early retail side of the Henderson Group was set up in 1897 and has brands like Spar and Vivo. It has grown to include wholesale and foodservice and now employs almost 6,000 people across Northern financial officer Neil Gamble said: "There is no respite for the consumer in this environment - it's a tough environment." Mr Gamble said he expects the rate at which food prices are rising could pick up slightly throughout the rest of the year."We think we are going to see that trend of rising prices continue, which is a real disappointment to us. We could see that trend going as far as 5% between now and the end of the year."He said that has changed how consumers in Northern Ireland are shopping by reducing footfall, but not the size of their basket."The consumer is visiting the store less often, but buying more," he said."That's typical of a cost conscious and waste conscious consumer, living through a cost of living crisis." What factors impact prices on the shelves? There are a myriad of global and local challenges pushing up costs for Gamble said: "We've seen trends across cocoa, coffee and butter that have led to direct price increases on shelf edges - the consumer will notice that."Unfortunately for us, food price inflation remains stubbornly high."The latest company results showed group turnover was up but there were also signs of inflationary example, the company's wages bill jumped to almost £150m after the government increased national minimum wage and employers' national insurance contributions in April in a move that has made taking on staff more said: "Sitting here as we look at the rising cost base, we are re-evaluating the investments that we are wanting to make. Those costs bases have real consequences."He added that energy costs have gone up substantially in recent years and are still "significantly elevated" compared to 2022 levels. How do you keep prices low when costs are rising? The retail market is highly competitive which means the business reviews prices weekly and has invested in prices and promotions and Gamble said: "It's a very difficult balance to strike - we are looking at a combination of macroeconomic trends which are out of our control and what growth is forecast in the grocery market and what we believe is an acceptable return to re-invest back into our business."We review our prices on a regular basis, in conjunction with our suppliers, to ensure we are passing through the right costs to the consumer so they will come into our shop and buy more." What do people in Northern Ireland think of food prices? Pat Marshall said: "I used to do a weekly shop and sometimes twice a week, but now it's every fortnight or once a month, because it's too dear, and I can't afford it. "What used to say cost you £10 now costs £12. "It all adds up - especially when you're a pensioner." Eve Cottell said: "As a student, it's hard to budget with prices going up and as a result, I won't be doing a full grocery shop as often."She added: "If there are different options available, I'll always go for the cheapest option." Jack Maginn said: "I'm finding it more and more difficult to make my own budget stretch."I'm trying to find ways of making it stretch across a week to account for lunches to take into work and am maybe buying meals that aren't of the same quality that they were in the past." As the mother of two young children, Emma O'Brien is "shopping nearly every day"."I have to be very careful and shop around and not buy from convenience stores as they are too dear," she told BBC News NI."It never used to make much of a difference, but now that I have much less disposable cash to spend, I'm definitely looking more at the price of things." Cahin Brolly said: "The rise in prices means I would probably do a once-a-week shop and keep it to the bare essentials and not buy anything unnecessary."
Irish Times
07-07-2025
- Business
- Irish Times
Wage bill at Spar operator Henderson Group eats into profits
Henderson Group, the operators of the Spar and Eurospar brands in Northern Ireland, reported a decline in profits last year despite sales rising 4 per cent in 2024 to almost £1.4 billion as staff costs increased and the group pumped money into its store network. Accounts filed with Companies House in the UK reveal that after-tax profits at the group dipped by 12 per cent to just under £43.8 million in 2025 from £50.2 million in 2023. Sales at the group jumped by 3.8 per cent to £1.38 billion, however, which the directors said was 'modest' but in line with the industry trens against a backdrop of rising costs. The increase in turnover was attributed to 'positive like-for-life performance' in its 103 owned and seven independent stores along with the expansion of its footprint through acquisitions. READ MORE Like-for-like grocery sales at Henderson Group increased by 1 per cent during the year, while sales at its food service division climbed by more than 10 per cent. The group employed more than 5,320 people in the year, up 4 per cent on the same period in 2023, according to the filings. [ BWG Foods to invest €35m in Mace convenience store business Opens in new window ] Staff costs, meanwhile, rose by almost 11 per cent in 2024 to £146.6 million. In a report attached to the accounts, the directors said Henderson Group had invested in employee remuneration in the year, plus 'a wide range of initiatives designed to improve colleague engagement', which had helped with staff retention. 'Operating costs were well-controlled and within budget,' the directors said, but said the group's 'strategic investment' in its workforce had contributed to a fall in operating profits. How the wealthy are buying up land to avoid inheritance tax Listen | 22:03 Henderson Group's food service division continues to grapple with 'uncertainty around Brexit and the Northern Ireland Protocol', the directors added. 'Whilst the Windsor Framework has alleviated some of these challenges, uncertainty remains as elements of the trading relationship evolve', they said. Cost pressures, 'including the impact of inflationary driven wage growth and the current UK government's fiscal policy', continue to add to the challenges facing the retail sector in Northern Ireland, the directors also noted.
