There is good news for consumers but bad new for Grocery Stores. That's because a grocery store war is going on. There is so much competition among grocery chains that they are offering bargains for shoppers just so they can keep customers. Grocery stores aren't making profits, but shoppers are getting good deals.
Good news for consumers
Phil Lempert, a supermarket analyst, reported that grocery stores are fighting among themselves and losing profits as they lower prices. Grocery stores are putting items on sale to keep regular customers and to get new ones.
Online stores and discount stores like Walmart are not involved in the store war because they are adding extras such as online deliveries and curb-side services to keep their prices stable.
Lower food prices
According to the Agriculture Department's Economic Research Service, prices have decreased 1.3 percent for the first time in 50 years. All shoppers should have seen a decrease in their food bill in recent weeks. Wegmans' executives admit that their stores had no other choice but to lower prices in all their supermarket chains. Prices on about 40 items, including beef, dairy and eggs have decreased. Shoppers probably have noticed that peanut butter went from $1.99 to $1.49 and organic bananas went from $0.69 a pound to only $0.59 a pound.
Officials said they have lowered prices on items families typically use the most.
Like Wegmans, Costco has also decreased the price of many items. The store has cut some of its prices in half. Last year, a carton of 18 extra large eggs was $3.61. Now that carton of eggs is down to only $1.79.
Kroger, with its 2,778 locations, also blamed the decline in its profits on lower Food Prices.
Like the other well-known stores, Kroger's meat, chicken, and eggs had the biggest cuts.
Have you noticed lower prices at your local grocery store? If so, now you know that stores have been forced to cut prices in order to keep you as a customer. Stores are competing with one another in a grocery war. While they are losing, the consumers are winning.
