Grocery stores take major decision to fight rising prices
Several items are set to become more expensive at Costco, a senior warehouse chain executive recently acknowledged. Meanwhile, Walmart has pledged to keep costs low this summer in order to appeal to customers who want to leave their homes more than a year after the start of the pandemic.
Truth be told, higher grocery prices don’t just affect customers. Supermarkets can also foot the bill when they cut costs to lure you inside. (Where should you shop on your next grocery run? It’s America’s best supermarket, according to a new poll.)
Grocery sales for the week ending June 19 are believed to have increased 15% from 2019. As more customers open their wallets, “supermarkets stock up on everything from sugar to frozen meat “before” what some executives predict will be one of the highest price increases in recent memory, “according to the the Wall Street newspaper.
“We buy a lot of everything,” David Smith, CEO of Associated Wholesale Grocers Inc., told the newspaper. “Our inventory has increased significantly from the same period last year.”
How exactly does Smith mean by significantly? His company stocks more than 3,000 supermarkets across the United States and has just increased its inventory by up to 20%.
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Experts predict that the price hikes could last until 2022. Buyers buy more, but their spending patterns can be difficult to predict, making it difficult to judge exactly how much to increase the stock of certain grocery items. according to The newspaper.
A good thing about stores that are inflating their inventory? This decreases the likelihood of further shortages of certain items on your grocery list.
Campbell Soup, General Mills and JM Smucker increase prices due to rising costs of production. Businesses large and small are still affected by the lingering effects of the pandemic, and far more so than the supply of toilet paper has been affected.
Production and manufacturing plants have suffered sporadic shutdowns amid outbreaks, and the impact has spilled over into the supply chain. A shortage of shipping containers has recently added to the mix. Some foods like meat, frozen foods and drinks are still not produced at the same levels as before the pandemic.
How much more will you have to pay? It depends. In order to ensure that buyers are always encouraged to keep buying, some grocers are not currently charging customers as much as they paid for certain items.
Remember how Walmart focuses on cancellations and price cuts? This is the reason why.
For more information on grocery shopping, read this below: