Monday, January 16, 2023

"Kroger Shoppers Reporting Mass Shortages Across Grocery Store Locations"

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"Kroger Shoppers Reporting Mass Shortages 
Across Grocery Store Locations"
By Epic Economist

"Kroger is by far the largest supermarket chain in the entire country, and millions of Americans rely on its stores for groceries and other necessities on a daily basis. The company operates over 2,800 locations across 35 states, including some brand names like Ralphs, King Soopers, and Dillon’s. But in recent weeks, Kroger shoppers have been complaining about mass shortages at its stores and unprecedented price hikes hitting a series of essential products. Yahoo reports that the shortages are looking a lot like “a repeat of early 2020 when many staples sold out”. The start of 2023 is seeing “a lot of empty shelves at Kroger,” according to numerous sources, some providing video evidence of the worsening supply chain issues.

On top of that, not only the grocer is facing multiple shortages, but prices for the items that are still available are reaching eye-popping levels. In one of the videos posted on social media, one grocery shopper documented staggering changes in inventory and pricing at the supermarket chain. Many bare shelves can be seen, while in several aisles shelves were only stocked with ultra-high priced items, with cheaper alternatives nowhere to be found.

“We are at Kroger, and are noticing price increases on groceries, and a lot of empty shelves!” one vlogger said during its latest visit to the supermarket. “We are here to check out skyrocketing prices and the empty shelves situation! It’s getting rough out here as stores seem to be struggling with getting products!” he added. Another worrying discovery the vlogger made was that most of the store-brand items were missing, and the only things left at the store were overpriced products of lesser-sought-out brands.

At this point, 86% of households noticed dairy price increases in Kroger stores, and 80% cited price gains in deli/meat/fish, according to the 84.51° Real-Time Insights Survey, which polled people who shopped with The Kroger Co. in the past three months. Other categories where Kroger shoppers saw higher prices included produce, cited by 78% of shoppers; drinks (73%), frozen foods (72%), paper products (72%), and household cleaners (66%).

In all of those product categories, Kroger shoppers reported that they’re cutting back - notably in drinks (42%), deli/meat/fish (34%), frozen food (23%), and paper products (21%) - and, the same survey showed that Kroger has seen unit sales decline in all of those segments last month, with decreases ranging from 4% to 8%.

Unfortunately, higher prices and supply shortages aren’t a problem exclusive to Kroger, and many other grocery chains will confront similar issues this winter. Brandon Scholz, president, and CEO of the Wisconsin Grocers Association, said that there is still an overwhelming demand from customers that the supply cannot keep up with.“We’re in a supply shortage situation,” said Scholz, adding, “grocers are not able to get all the food they ordered from their suppliers and that’s why you see empty shelves.”

As we are hit by one crisis after another throughout 2023, retail analyst project that our supply chain problems will continue to intensify in the coming months. So we encourage our viewers to stock up while they still can. Yes, prices are ridiculously high now, but the truth is that they aren’t going to be getting any lower than they are at this moment. And it is safe to say that inventory holes will only grow wider from here on."
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