Economy
Supermarkets Stocking Up As Food Prices Rise
Anticipating higher food prices, supermarkets across the US are stocking up on food supplies. They’re getting ready for the continued increase in prices due to an ongoing supply chain crisis.
RELATED: Inflation Goes Wild: Consumer Prices Up 5% In May
Buying And Storing Supplies
Some supermarket chains admitted to buying, then keeping supplies to ensure they have enough stock even as demand continues to rise. In fact, grocery sales for the week ending June 19 registered a half percent increase from last year, but a 15% increase from 2019. This is according to Jefferies and Nielsen information.
As a result, supermarket stockpiles are driving shortages. The increased purchases of grocery chains are pressuring an already-strained food supply chain. Suppliers currently face higher transportation costs, labor shortages, and shortages of ingredients.
Reversal From Last Year
The situation where chains are doing the stockpiling is a reversal from last year. During the start of the pandemic last year, consumers emptied store shelves for fear of shortages. Now, retailers themselves are stockpiling to get items at lower costs to protect their margins.
David Smith, CEO of Associated Wholesale Grocers Inc. confirmed their plans on stockpiling. He said that they are now purchasing between 15 to 20% more inventory, especially items with long shelf lives. “We’re buying a lot of everything. Our inventories are up significantly over the same period last year,” AWGI is the wholesaler for more than 3,000 grocery stores. Buying more in bulk also helps the company get higher in-stock levels.
Increasing Inventory When Food Prices Start To Rise
Food sellers usually increase their purchase quantity when food prices start to rise. In the last few years, price changes remained modest and generally involved a circle of specific products. However, this year proved different, as price increases feature higher rates and cover more items than the usual.
Popular manufacturers such as General Mills, Campbell Soup, and JM Smucker are among those raising prices to offset higher costs. Meat and produce prices are also rising, and retailers are bracing for more increases until the end of the year.
Higher Prices For Food And More
Even as supermarkets pass along the increases to shoppers, they continue to buy groceries more than ever. Prices are also going higher for items such as used cars and airline tickets. So far, the increases have yet to translate to grocery prices. Many chains continue to keep prices low in order to compete with discount stores.
Despite assurances from the Federal Reserve that higher prices are transitory, few retailers believe that food prices will go down soon. A worker shortage is keeping labor and transportation expenses. At the same time, many companies had to offer higher salaries to maintain their workforce.
Feeding Frenzy
Tony Sarsam, CEO of Michigan-based SpartanNash Co, is also buying more and keeping more products in inventory. “When you have a uniquely inflationary period like now, it’s a feeding frenzy,” he said. The retail and distributing company is stockpiling about 20% to 25% more groceries. Sarsam said that more than 100 suppliers notified the company that they will raise prices soon.
However, stockpiling can also worsen shortages. While the supermarket industry managed to recover quickly from last year’s panic buying, they remain unsure about this year.
Some retailers already report that some items are running low. Many retailers say they’re receiving less than 80% of their orders from suppliers. “It runs the risk of making a bad situation worse,” said B&R Stores Inc president Mark Griffin. B&R is storing 10% more groceries including staples such as sugar, flour, and cereal. “If Walmart raises prices, so will we,” Mr. Griffin said.
Watch the 23 ABC News video reporting that food prices soar nationwide:
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16 Comments
Joe Biden needs to go worst president ever following after Obama.2024 is coming vote Trump.
After Biden has had his own agender of ruining America no one will vote for him again! President Trump had the nation working and the wall was being built, gas was much cheaper by very much! He had a pipeline being built for oil from Canada; Biden had it totally destroyed! Personally, I will never vote for another Democrat! I for the rest of my life.voted for Trump and I am going to vote Republican
Our government is too stupid to correct this and is too arrogant to care.
We need some kind of control over our legislators.
I’m going to get a fishing and hunting license!
Don’t blame me I voted for TRUMP
This is what the MSM needs to be talking about but they are to busy kissing Child molester Joe Biden ass!! I am so sick and tired of these SUB-HUMANS Democrats and LIBERALS screwing up my Country!! We must vote them out!!!
This country is going toward starvation & being without water with O’Biden & the democrats in power. The more illegals..the less for Americans. They are so careless & heartless for this country!
Retail prices soaring is all bullshit and greed. You didn’t see prices go down when gas prices were at their lowest point in several years, so why are they going up because gas prices are back to their previous level??? It’s all greed, and the retailers are spewing bullshit to get the consumers to “accept” it.
The sad thing about supermarkets stocking up is that they will buy at a low price and gouge shoppers with a higher price. This in turn will increase their profit line while screwing the consumer again. If you think they’re going to buy it low and sell it low you are crazier than I am.
WELCOME TO ” THE NEW & IMPROVED AMERICA” GET USED TO IT ! AMAZING ALL THE TECH. AVALABLE & NO COMMON SENSE AT ALL. IF YOU VOTED FOR BROADWAY JOE , SMILE & GET YOUR WALLET OUT !!!
SO SAD TO SEE THIS GREAT COUNTRY BEING BROUGHT DOWN BY SHEAR STUPIDTY !!!
GO LEFT MY FRIEND ; THE WAY TO DISTRUCTION !!!!!!!!!!!
WELCOME TO AMERICA ; THE LATE USED TO BE GREAT COUNTRY !!!1
WHEN THEY BURY ALL DEMACRATS THE PREACHER HAS TO SAY ;
HERE LIES THE TRUTH ; IT NEVER CAME OUT !!!~
There is sneaky plan from the administration
That’s the way Socialism works you can thank our liberal controlled Government for this as it is part of their agenda to destroy this country
We need term limits on both houses of Congress. 2 terms for senators, and 5 terms for the house..
I like that O’Biden line. We are headed for big trouble and the DEMS are so stupid and corrupt along with the unions. You pay your dues they do nothing for you and just buy up more real estate and lobbyists! Republicans have to learn how to fight harder and meaner!! Prices of meat, gas,… are off the charts. I always wondered why the very wealthy are Dems HMMMMMMMM??? Let’s let all the drug dealing rapists into our country so they can vote for the Dems….Don’t people get this charade let’s keep all the people under our control throw them a few bucks and maybe some health insurance and we will get their vote and we can control the government and everyone it. BIDEN/HARRIS worst in history!
If everyone voted for Trump in the first place I guarantee you it wouldn’t be like this today thank you for all those Democrat supporters y’all will live long and prosper well let’s poor ass people will pay the price
2 of the choices / responses –
“Inflation is now going out of control” (and)
“Supply will get worse as retailers protect their profits” ~
pretty much go hand in hand.
The “demoncrats” which answer to satanic forces are a looming problem
and ALWAYS have been. It doesn’t take a “rocket surgeon” to figure that out,
but it does require a clear mind, something of which, most people nowadays (LACK).
2 Corinthians 3:14
But their minds were blinded: for until this day remaineth the same vail untaken away in the reading of the old testament; which vail is done away in Christ.
2 Corinthians 4:4
“In whom the god of this world hath blinded the minds of them which believe not, lest the light of the glorious gospel of Christ, who is the image of God, should shine unto them.”
Like it or NOT (NON-BELIEVERS) this IS already happening, is increasing – and WILL get worse. Some of you will come to understand this, most wont.
And you will be part of [that] contingency that blasphemes GOD till the bitter end.