British consumers believe supermarkets generate profit margins of around 50%, despite actual margins typically ranging between 2% and 4%, according to research from the Institute of Economic Affairs (IEA).
The survey of 3,001 UK voters found that supermarkets are perceived to be among the most profitable sectors in the economy, ranking alongside airlines and property developers. In reality, food retailers operate on some of the lowest margins of any major industry.
The IEA said the findings highlight a significant gap between public perception and commercial reality, with many consumers viewing large businesses as benefiting at their expense. The report warns that such beliefs may make it harder to build support for policies designed to encourage business growth.
The results come as supermarket leaders continue to call for reduced regulatory burdens amid ongoing inflationary pressures and rising operating costs.