jack, accounting professor at the university of portsmouth. you supermarket university of portsmouth. you supermarket model university of portsmouth. 7m, supermarket model for nearly 100 years has been to break even on basic goods and make the profits on the nonessentials and non grocery, on payments to suppliers and by cutting costs so, logically, they are already keeping the cost of basics right down, and we do know that they are transferring some of those profits from nonessential goods that they get ironed from alcohol and chocolate for example, and from cost cutting, into trying to keep those prices of the basics lower. so, yes, it is a difficult one. where are they going to go on this? ,., ., , ., . one. where are they going to go on this? ,., ., , ., ~ , ., this? good question. we understand somethin: this? good question. we understand something similar this? good question. we understand something similar has this? good question. we understand something similar has been -
now, here in the uk, the supermarkets say their margins are already tight and they are already doing what they can to set the lowest possible prices. there are also concerns that this proposal could hit smaller retailers. but it has to be said that experts say that the price of food is going to become the big cost of living issue, overtaking energy prices in the coming months. that was nicky schiller. i ve been speaking to lisa jack, professor of accounting at the university of portsmouth about why would supermarkets want to do this, what s in it for them as it s voluntary. the supermarket model for over nearly 100 years has been to break even on basic goods and make the profits on non essentials and non grocery, on payments from suppliers and by cutting costs. so, logically, they re already keeping the cost of basics right down and we do know that they are transferring some of those profits from non essential
discussions last night, cap. my understanding based on discussions last night, this - cap. my understanding based on discussions last night, this is - discussions last night, this is following constructive discussions with supermarkets about how we work together with supermarkets about how we work together and not about any element of compulsion. the together and not about any element of compulsion- together and not about any element of compulsion. the british proposals are based on of compulsion. the british proposals are based on a of compulsion. the british proposals are based on a similar of compulsion. the british proposals are based on a similar scheme - of compulsion. the british proposals are based on a similar scheme that i are based on a similar scheme that has been introduced in france, where the government agreed with a range of retailers to set the lowest possible price on a range of items. now, at the time, ministers said it would cost several hundred millions o
but the government is not being perfectly square, perfectly clear and they say they are making reasonable demands because of the profession simply cannot recruit and retain enough doctors and uc huge waiting list of people waiting to get treatment in the health service. let s have more now on the uk overnment s proposal to cap the price of some basic goods in supermarkets, which could help people tackle increases in the cost of living. joining us live is lisa jack, professor of accounting at the university of portsmouth. thank you for talking to us. i suppose the first question would be why would supermarkets want to do this? it is going to be involuntary, what is in it for them. it is difficult what is in it for them. it is difficult to what is in it for them. it is difficult to say what is in it for them. it is difficult to say because . what is in it for them. it is | difficult to say because the
structures and the way the entity works in france are somewhat different to the uk. essentially, what the government are putting pressure on supermarkets to do, talking to them about shall we say, is to leverage what they really have which is bargaining power down the supply chain. the trouble is, as your previous speaker said, the suppliers, particularly farmers and growers are already cutting their costs down to the bone, and what is still really working through are really high fuel costs. although they have gone down, is still tied into those costs from six months ago. food is still tight. lisa ago. food is still tight. lisa jack, professor ago. food is still tight. lisa jack, professor of ago. food is stilltight. lisa jack, professor of accounting at the university of portsmouth. now it s time for a look at today s sport. all eyes will be on the premier league later today. two of leicester, leeds and everton will be relegated to the championship. all three sides are a