Supermarket Tesco is facing a £9m (US$16.5m) rise in the cost of carrier bags this year as oil prices rocket to new highs, according to the Independent on Sunday newspaper.
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Company secretary Lucy Neville-Rolfe confirmed the increase as the price of crude crashed through $61 a barrel. Neville-Rolfe said that spikes such as this in energy costs were “out of our control” and a heavy burden for the retailer, which recently reported record profits of more than £2bn.
The chain was unable to say how much it usually spent on carrier bags, but a spokesman called the £9m hike a “significant” increase. Oil is used in the making of plastics.
However, it is not the only soaring cost that the group faces. Neville-Rolfe said the revaluation of business rates (local taxes) was another big factor that would see the retailer – which has 1,800 shops across the UK – paying an extra £50m this year, a 25% hike. “It hits businesses right across the economy,” she added.
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By GlobalData
