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Esteemed Contributor
Posts: 7,830
Registered: ‎10-03-2014

Supermarkets Are Stockpiling Inventory as Food Costs Rise

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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.   

 

 

 

 

Respected Contributor
Posts: 3,220
Registered: ‎11-26-2019

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

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

Trusted Contributor
Posts: 1,720
Registered: ‎03-06-2020

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

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....).

"Coming to ya from Florida"
Respected Contributor
Posts: 3,866
Registered: ‎05-01-2010

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

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.

Trusted Contributor
Posts: 1,987
Registered: ‎05-13-2021

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

[ Edited ]

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

Honored Contributor
Posts: 17,127
Registered: ‎10-25-2010

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

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.

Valued Contributor
Posts: 742
Registered: ‎03-10-2010

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

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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??) 

 

Trusted Contributor
Posts: 1,987
Registered: ‎05-13-2021

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

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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.

Honored Contributor
Posts: 13,774
Registered: ‎07-09-2011

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

@Foxxee 

 

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

"Animals are not my whole world, but they have made my world whole" ~ Roger Caras
Esteemed Contributor
Posts: 7,830
Registered: ‎10-03-2014

Re: Supermarkets Are Stockpiling Inventory as Food Costs Rise

[ Edited ]

 


@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 | Da...