It’s not all profit for supermarkets during the Covid crisis

The damaging impact of Covid-19 on retailers is well reported and the longer term impact remains to be seen. Recovery – in whatever form it takes - is likely to be built on a careful synchronisation between restimulating demand and supply in parallel. It’s interesting to see that even food retailers – who have seen a significant upturn in their businesses – are not profiting quite as much as people perceive.

In a sector that is relatively low margin the need to increase the workforce, enhance existing and already complex delivery channels and other related costs will have a significant impact on the nation’s supermarkets.

Add to that the reputational dilemma of paying dividends – as would be the norm under typical trading conditions – the next few months present a complicated set of decisions for some of the UK’s largest retails. And, like many others in their sector the only real path to certainty is a return to some semblance of normality within the next few months.