- Supermarkets are trying to protect their profits amid higher costs
- Shoppers are buying more with grocery sales up 15% in June compared to last year, leaving shelves depleted
- Food prices are surging as inflation rises to its highest level in 13 years
- Associated Wholesale Grocers is buying 15 to 20% more goods while SpartanNash up to 25% more stock including frozen meat
- Consumer price index for grocery store and supermarket food purchases was up 0.7 percent in May compared to May of last year
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.
Numerous household staples have been impacted with bacon 14 percent more expensive and milk and oranges climbing 8 percent higher.
David Smith, CEO of the US’s largest wholesaler Associated Wholesale Grocers, told the Wall Street Journal they have been buying 15 to 20 percent more goods – particularly packaged foods with long shelf lives.
‘We’re buying a lot of everything. Our inventories are up significantly over the same period last year,’ said Smith.
At SpartanNash in Michigan, the retailer has bought up around 20 to 25 percent more than normal including frozen meat.
CEO Tony Sarsam said the ‘uniquely inflationary period’ has caused ‘a feeding frenzy.’
Some retailers, including Ahold Delhaize USA, are even expanding their warehouse space so they can stock up on even more goods.
Ahold Delhaize USA, which runs the Food Lion and Stop & Shop chains, has bought up 20 percent more stock of paper and cleaning products.
The recent spike in prices and need to stockpile comes as several factors are pushing up costs all the way from farm to store.