Posted 3/21/2024, 3:00:00 PM
Grocers' Pandemic Profits Raise Questions About Price Hike Justifications
- Grocery retailer profits rose during the pandemic and remain elevated today, calling into question claims that rising prices are due solely to rising costs
- Large purchasers pressured suppliers to favor them over small rivals during supply shortages, gaining a competitive advantage
- Firms recognized the risks of having few suppliers and some explored diversifying or even acquiring manufacturers
- Decline in manufacturer promotions during shortages disadvantaged retailers reliant on promotions to lower prices
- Larger, EDLP model retailers less affected by declines in manufacturer promotions
