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Abstract

During the middle of the year 2023, the economy of UK was facing a deep crisis. A number of stalwart grocery brands had been raising commodity prices exorbitantly, much beyond basic costs of production. Termed as 'Greedflation', the entire move was to drive the corporate profiteering initiatives. Delving into the intricacies, the term was understood to refer to deliberate price hikes by companies aiming to capitalise on inflation and generate business profits beyond norms. At the political level, bureaucrats expressed concerns over the impact of grocery price inflation on squeezed households as well. Overall inflation within the UK's economy had already added woes to the lives of the consumers amidst the overwhelming 'cost of living crisis' post the COVID-19 pandemic. There was a deep economic impact of the Russia Ukraine war during 2023, which, in turn propelled the energy crisis within the UK's economy. Simultaneously, UK's economy also suffered from intrinsic labour shortages, while, demands for public wage hikes became aggressive post pandemic. With staunch allegations on the retailers to enhance profits, will the contemporary supermarket business model help the UK Government to ward off inflation?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
Europe
Country:
United Kingdom

About

Abstract

During the middle of the year 2023, the economy of UK was facing a deep crisis. A number of stalwart grocery brands had been raising commodity prices exorbitantly, much beyond basic costs of production. Termed as 'Greedflation', the entire move was to drive the corporate profiteering initiatives. Delving into the intricacies, the term was understood to refer to deliberate price hikes by companies aiming to capitalise on inflation and generate business profits beyond norms. At the political level, bureaucrats expressed concerns over the impact of grocery price inflation on squeezed households as well. Overall inflation within the UK's economy had already added woes to the lives of the consumers amidst the overwhelming 'cost of living crisis' post the COVID-19 pandemic. There was a deep economic impact of the Russia Ukraine war during 2023, which, in turn propelled the energy crisis within the UK's economy. Simultaneously, UK's economy also suffered from intrinsic labour shortages, while, demands for public wage hikes became aggressive post pandemic. With staunch allegations on the retailers to enhance profits, will the contemporary supermarket business model help the UK Government to ward off inflation?

Teaching and learning

This item is suitable for undergraduate, postgraduate and executive education courses.

Settings

Time period

The events covered by this case took place in 2024.

Geographical setting

Region:
Europe
Country:
United Kingdom

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