Major Grocery Stores Are Getting Rid of This Right Now
You might notice this missing on your next shopping trip.
Grocery shopping hasn't exactly been easy over the last two years. The COVID pandemic not only made it harder for people to leave their homes and venture into crowded grocery stores, but it also contributed to massive shortages for a number of products, from various foods to household essentials like toilet paper. At the same time, some major grocery stores have also banded together to deliberately remove certain items from shelves amid controversy. Now, multiple retailers are getting rid of another staple in stores. Read on to find out what you might notice is missing during your next grocery trip.
Grocery stores are getting rid of deals as a result of supply chain issues.
If you're hoping to score a good deal the next time you go grocery shopping, you may be disappointed. Many stores and chains have confirmed that they are curbing discounts and promotions to try to prevent products from selling out even faster amid supply chain issues, The Wall Street Journal reported. Both Bristol Farms and New Seasons Market have cut down on deals recently, according to Neil Stern, the chief executive of Good Food Holdings LLC, which operates these two grocery chains among other West Coast retail chains.
"You don't want to promote when you can't fill the products," Stern told the WSJ. According to executives, shoppers have an easier time with substituting products or switching brands when one specific product doesn't have a huge promotion occurring.
Promotions aren't expected to be back in full swing before Thanksgiving.
Don't expect to score a deal on your Thanksgiving turkey either. IRI, a data analytics and market research company, reported that while promotional activity already reflects shortages, it isn't likely get better any time soon. The agency says that retailers are expected to run between 1 to 9 percent fewer promotions on Thanksgiving food necessities.
"Shoppers should expect lower levels of promotion and an increased need for substitutions. While some of these categories typically see high levels of promotion as the holidays approach, retailers will have less incentive to promote this year given the high demand and low in-stock rates," the IRI said. "As a result of availability, lesser anticipated promotional levels and continuing inflation, shoppers may need to substitute items across key Thanksgiving categories (e.g., substituting fresh for frozen desserts) or try to find their favorite products at other stores."
Food prices are also going up.
You should not only expect fewer deals, but also higher prices. According to The Washington Post, shortages, bottlenecks, transportation, weather, and labor woes have all caused food prices to rise over the last year. The Labor Department reported on Oct. 14 that inflation at the wholesale level was 8.6 percent higher this year compared to Sept. 2020, making it the largest annual increase since the department started calculating this number in 2010. And since grocery stores are paying more for food, they are charging customers higher prices.
"History shows us that price adjustments are more likely to be accepted in the market when industry-wide and broad-based input cost inflation occurs," David Marberger, chief financial officer of Conagra Brands, one of the world's largest food companies, said in the company's third-quarter 2021 earnings call, per The Washington Post. "And that's the environment we see today."
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And rising prices aren't expected to let up any time soon.
Unfortunately, higher food prices aren't expected to be a short-lived phenomenon. Phil Lembert, a food industry analyst and editor of SuperMarketGuru.com, told CBS Los Angeles that customers really haven't "seen anything yet" in terms of rising food costs. "Prices are going to continue to go up for a good year and a half," he warned.
According to Lembert, the largest increases customers should expect to see are likely to be for animal-based products, "whether it's eggs or milk or pork or beef." According to The Washington Post, the costs of meat, poultry, fish, and eggs are already up 5.9 percent from 2020 and up 15.7 percent from prices in Aug. 2019.