Thursday, December 1, 2022

"Food Products Are Now 125% More Expensive At Walmart"

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"Food Products Are Now 125% More Expensive At Walmart"
by Epic Economist

"If you usually go grocery shopping at Walmart to save money – we’re sorry to break it to you but you’re not saving as much as you think. By now, you probably already noticed that grocery prices are on the rise in each and every store. But a new report reveals that that’s especially true at Walmart, despite its low-price promise. The editorial team at Trading Pedia analyzed the price increases of 34 grocery items at Walmart over the past two years, and they found that prices on most items have significantly surged, with many of them soaring by more than 100%. No wonder why, in October, roughly 90% of Americans said they are worried about the rampant cost of food, a separate survey found. And yet, we’re being told to expect a brand new wave of food inflation in early 2023, as the compounding effect of lower food production and supply chain challenges further exacerbate the cost of living crisis in the U.S.

Brian McColl, a financial analyst at TradingPedia, crunched the numbers for the most common foods sold at the stores of the world’s biggest retailer, and the results he and his team found were quite shocking. The analysis found that over the past two years, the retail giant charged 31% more for a package of chicken breasts, while a package of 18 eggs costs 126% more, and a gallon of milk soared in price by 150%. The dairy and eggs category saw the biggest jump, at an average increase of 70%. Sweet onions also saw a dramatic increase of 165% while an eight-pack of Pepsi shot up by 67% compared to 2020 prices. On average, the price of Walmart's meat and seafood rose by 22% while vegetables rose by 29%. Olive oil prices grew 48%, and tomato sauce saw a 57% surge.

On top of all that, a recent viral video showed a Walmart employee replacing the cost of salad dressing at the chain superstore from $2.24 to $7.88, an increase of more than 350%. A similar report by retail analysts at JP Morgan found that in the last quarter, Walmart raised prices the most among top food retailers. “

The rising prices at Walmart’s stores are having a major impact on its customers’ grocery bills. And in recent statements, the company’s executives said that "double-digit" food inflation has hurt sales in other areas of its superstores — and will continue to do so for the rest of this year. The company said earnings per share for its fiscal 2023 will fall about 11% to 13%, coming in below the latest Wall Street estimates.

So at the end of the day, the retailer’s bottom line is being hurt, too. Food retailers typically pass along the price hikes imposed by food manufacturers. But in a year when big names, such as Kraft Heinz, JBS, Tyson Foods, and Mondelez, announced price increases between 30% to 70% in a wide range of products, there’s only so much retailers can do to keep prices low.

All of this bad news are coming at a time when about 90% of Americans are already concerned about food prices, according to a survey conducted by The Harris Poll on behalf of Alpha Foods. With no end in sight to increasing food prices, millions of families are already having to skip meals and take on debt to cover their basic necessities. Another dark winter is about to begin, and all signs suggest that 2023 will be a year of severe economic pain all over the nation."

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