“[Inflation] has been going on in certain categories for quite some time,but the level of across the board cost inflation that we’re seeing hasn’t been seen for quite some time,” he said.
“That will impact part of the community that we will have to look after.”
Coles will look to absorb what price increases it can,however,Mr Cain noted the level at which the supermarket can do this will vary by product but said the company would try and focus as much on “value” as it could.
“We’ll be looking at some of the cost price increases that we accept and think about if they can be passed on in dollar terms or in percentage terms and still remain competitive,” he said. “We’ve also got to do a job for our shareholders as well.
“The best way of doing a job for your shareholders is to please as many customers as possible in the first place.”
On Tuesday,Coles unveiled its results for the first half of the financial year,a period that saw the company’s earnings crimped as the retailer was forced to spend millions on rapid tests and additional workers as COVID-19 heavily affected operations.