topic Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise in Community Chat

Supermarkets Are Stockpiling Inventory as Food Costs Rise

Foxxee — Tue, 13 Jul 2021 16:32:06 GMT

Supermarkets have started stockpiling food as inflation rises to its highest level in 13 years and they predict it will get worse.

Retailers are currently buying up to 25 percent more supplies than usual ahead of the predicted rise.

Recent data from the US Department of Agriculture revealed the consumer price index for grocery store and supermarket food purchases was up 0.7 percent in May compared to May of last year.

Sales were also 0.5 percent higher compared to this time last year when fears of the virus led shoppers to go into a panic-buying frenzy.

This rise in sales is leaving supermarket shelves depleted, forcing stores to increase their inventories to keep up with demand.

Additionally, retailers are being pushed to stockpile due to concerns that food prices will continue to surge.

Supply chain issues have been pushing up prices with labor shortages putting wage pressure on the grocery sector.

Transport costs are also rising with gas prices rising 56 percent in May from a year ago.

'The inflation pressure we're seeing is significant,' General Mills CEO Jeff Harmening said at a recent investor conference.

'It's probably higher than we've seen in the last decade.'

With concerns mounting that inflation will grow further, retailers are stocking up on inventory before prices of inventory rise.

However, stockpiling then also becomes part of the problem, creating shortages that then push up the prices further.

Several retailers told the Journal they are receiving only around 80 percent of their orders from suppliers as key goods run out.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Luvsmyfam — Tue, 13 Jul 2021 04:31:21 GMT

just wonderful news.now,something else to worry about.just freaking great!

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

FiddleDeeDee — Tue, 13 Jul 2021 04:42:50 GMT

Eh. All I know is that the price of food isn't stopping people from piling their cars sky-high at Costco or Publix when I'm in there clutching my meager list and buying stuff to store in case of a hurricane (Costco still has the best price around for bottled water and batteries, so....).

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

chessylady — Tue, 13 Jul 2021 04:44:34 GMT

One way to overcome inflation is to stop wasting food. Too much of the fresh fruits and vegetables we buy go into the trash. If people start hoarding again because of fear, it makes problems worse. I need to reorganize my pantry and plan meals based on what is in my freezer and pantry.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

decaf — Tue, 13 Jul 2021 04:46:09 GMT

News releases like this just make the problem. worse, everyone starts stockpiling food.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Carmie — Tue, 13 Jul 2021 04:47:27 GMT

I have increased my stockpile too. I have a huge pantry in my basement that is full, plus two deep chest freezers and one upright freezer, plus two refrigerators with attached freezers.

This helped me through the pandemic. We had everything we needed. I even was able to help out family and friends with food, paper goods and cleaning supplies.

We already know more shortages are coming. We should be prepared. I buy an extra item or two every week for things I use most often and wouldn't want to be without.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

sipp — Tue, 13 Jul 2021 05:29:23 GMT

Wegmans really hasn't been stockpiling-just the opposite- we don't shop in the store- they didn't have safety factors in place and were the first to eliminate masks (though their personnel still wear them) also they took out their hand sanitizers and don't wipe the self-service kiosks even though they have a person standing there to "help" if you don't know how to use them.... HOWEVER- throughout the epidemic- we decided on curbside pickup- wasn't thrilled with someone else doing my shopping but no choice- didn't have anyone to help us--- They charge 15% higher price than if you go in the store and shop- they say it's because they have shoppers- but they PAY a salary to the shoppers in the first place- so why the 15% on top of that? Greed. and no competition.They STILL run short of inventory after all this time. why is that I wonder when they heavily advertise that it's summer time and fruits and vegetables abound" Local produce is abundant but again- marked up to ridiculous prices (who pays $2 for ONE PEACH??)

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

decaf — Tue, 13 Jul 2021 11:50:27 GMT

Thanks to all of us that live in hurricane zones and who won't be stocking up right now, they'll be plenty extra for everyone else to buy.

Panic buying creates lower supplies and higher prices. BAD idea.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Drythe — Tue, 13 Jul 2021 06:40:57 GMT

@Foxxee

Your source is partially cut off, could you please re-post?

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Foxxee — Tue, 13 Jul 2021 07:44:26 GMT

@Drythe wrote:
@Foxxee

Your source is partially cut off, could you please re-post?

@Drythe

The link doesn't copy entirely. It still works.

US supermarkets stockpile up to 20% more supplies as they predict inflation will get even worse | Daily Mail Online

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Foxxee — Tue, 13 Jul 2021 16:35:09 GMT

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

qualitygal — Tue, 13 Jul 2021 08:42:27 GMT

After the lasI round of empty shelves, if I see it on the shelf, and know it will be used in a timely manner, I get it. I no longer trust it to be there on my next visit. Lesson learned.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

CrazyDaisy — Tue, 13 Jul 2021 09:35:38 GMT

Store warehouses have been completely depleted over the last year or so. That was always the buffer to price increases. Restocking these warehouses has become more difficult due to these other factors. Manufacturing facilities are having those same issues getting the parts they need.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Sweetbay magnolia — Tue, 13 Jul 2021 10:08:02 GMT

It's a blip on the radar as far as my local grocer is concerned. And a less than 1% increase in prices, though undesirable, is not panic-worthy.

I see a wide array of great food. Some prices are up, some went up last year, and some are unchanged.

The CEO of General Mills (quoted in the article) oversees an empire of prepared foods, and I don't believe that is indicative of grocery market sectors in the entirety.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Desertdi — Tue, 13 Jul 2021 10:34:23 GMT

.7% is 70 cents on $100.00

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

CalminHeart — Tue, 13 Jul 2021 10:51:02 GMT

@Desertdi wrote:
.7% is 70 cents on $100.00

That may not be much for some people but it is for others.

7% of 100.00 is 7.00.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

agb80 — Tue, 13 Jul 2021 10:50:59 GMT

I have found that not all supermarkets within the same chain are created equal at all and hate to say it but based on location, will either have empty shelves or full shelves. I live in a diverse area that's truly wonderful and relatively crime free yet shelves are mostly bare. The same supermarket 3 miles up the road in a tonier and less diverse neighborhood has the items we need and even more infuriating markdowns that ours doesn't have! Makes us mad!

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

amyb — Tue, 13 Jul 2021 12:16:23 GMT

Everything suddenly is just so expensive. Hold tight to that $$$. (says the girl who's "had a little online buying party" since Jan...but is trying to be good, having just paid my property taxes...sigh.)

But food is a necessity! ugh. With so many people still reeling from job loss etc.

I had started some needed home renovations before Covid...painting got done and a few other things. Flooring was going to be next. Sigh...now flooring is up like 300%! I'm waiting it out. That sad, tired burber carpeting is gonna have to be ok for now. But I had to buy sliders as the other 30 y.o. ones were not functioning well, (tracking gone)...waiting for that bill. Still haven't been able to schedule a contracter or get a quote from one. After that...going to wait things out...but in our area...building and home buying is at an all time high, so I don't see these guys having to reduce their pricing anytime soon. Supply/Demand

But I digressed.....

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Denise in PA — Tue, 13 Jul 2021 12:27:10 GMT

I work part-time in a supermarket. The company owns over 260 stores. I know with certainty that we do not stock pile products. Biggest reason is storage - the business plan for our chain is all products received must be on the shelves within 2 days, so it is product in/product out in that time period. It works.

I truly don't understand how any store could have sufficient storage to stock pile food items.

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

Shanus — Tue, 13 Jul 2021 13:00:39 GMT

What I found the last time around with the hoarding of foods/supples and shortages, is that it was TP, etc. yes, but shelves cleared of pre-papared foods, canned goods and frozen items...pizzas and hot pockets, frozen fried chicken nuggets and french fries/tator tots, etc.

We've never eaten those unhealthy items which were also always more expensive. I can make chicken nugets for a tenth the cost of the frozen ones. Yes, takes a bit more time, but we don't eat that way...fresh fruits, veggies and minimal meat and chicken.that way.

We have always eaten very little pre-prepared foods and learned how to do even less the last time around. Healthier eating (less salt, sugar and chemicals, perservatives) can save you money.