Sainsbury’s CEO has said despite falling inflation, shoppers are still cautious about spending as he pinned his hopes on the upcoming budget to restore consumer confidence.

Sainsbury’s chief executive Simon Roberts told Reuters that the government could alleviate consumers’ worries by setting out its tax and spending plans in the upcoming 30 October budget and stimulate spending.

Roberts said that despite signs of positivity in the UK markets, such as falling inflation, higher waters and robust employment levels, UK shoppers are demonstrating a “continued caution”.

“Discretionary markets continue to be difficult. Consumers inevitably are wanting to be clearer about what’s going to happen next and for that reason we see a continued caution in discretionary spending.”

“We need to see interest rates continue to come down because that directly impacts household spending. I think clarity in the budget, one way or another, is helpful,” the Sainsbury’s boss said.

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Despite this, Roberts said he still feels confidence that shoppers are set to spend this Christmas, and that the grocery giant is set to have a “strong” festive period.

“What we’ve seen over the last three or four years through the pandemic and the inflation crisis, Christmas has been a time when people in the end want to be together with their friends and family and loved ones.

“There’s absolutely no complacency at all in our business. We’ve had three strong Christmases and we’re preparing for a fourth one to come,” added Roberts.

The Sainsbury’s chief executive’s comments come as the UK’s second largest grocer prepares for Christmas, following a year of investment into the business, such as changing its Nectar loyalty scheme, bolstering its product range, and ramping up its Aldi price match scheme.