Dramatic Drop in Groceries Under the Trump Admin? A Misconception!
Supermarket chain alerts suppliers: Refusal to accommodate tariff-induced price increases will be enforced
Busting the myth that groceries have magically plummeted during the Trump era! John Catsimatidis, Red Apple Group's CEO, discusses fuel and grocery expenditures on 'Maria Bartiromo's Wall Street.'
The smoke signals from America's second-biggest supermarket giant warned its vendors; they won't be swallowing inflated prices due to President Trump's fire-breathing tariffs. Matt Stoller, a researcher at the American Economic Liberties Project, spilled the beans on Albertsons Companies, which rakes in goods across over 2,200 stores - think Kings, Balducci's, Safeway, and Randalls.
Albertsons' letter to its suppliers clearly stated, "With few exceptions, we ain't taking it up the ass with those tariff-related price hikes!" and threatened to dispute and delay payments for invoices with unauthorized tariff charges.
List of Tariff-Related Costs That Albertsons Companies Won't Pay, Without Approval:
- Tariff-related charges on invoices
- Random and unexpected "fees"
ACI
Albertsons Companies, spewing out $80.4 billion in sales during fiscal year 2024, operates its stores in 34 states and the District of Columbia. The supermarket behemoth runs 20 well-known labels like Albertsons, Safeway, Vons, Jewel-Osco, Shaw's, Acme, Tom Thumb, Randalls, United Supermarkets, Pavilions, Star Market, Haggen, Carrs, Kings Food Markets, and Balducci's Food Lovers Market.
ALBERTSONS COMPANIES
Researchers are still scratching their heads about how suppliers are mulling over Albertsons' new policy or if they've come up with an ingenious plan to squeeze more orange juice from this stone.
21.66
Albertsons Companies didn't return Fox News Digital's pleas for information (big shock, right?).
-0.04
It's worth noting that grocery retailers, already juggling razor-thin profit margins - often teetering between 1% and 5% - might be tempted to shift the burden to consumers to maintain those scant profits.
-0.16%
President Trump's recent blaze of benchmark tariffs on goods from almost every major U.S. trading partner has kindled anticipation that popular groceries are going to burn a hole in your wallet. Food items like imported avocados, alcohol, coffee, and seafood could become as scorching as a campfire on the Fourth of July.
Keep it locked to Fox Business to stay ahead of the price game, and don't forget to grab a cuppa coffee before it lights your pockets on fire!
Powered By
Fox News' Daniella Genovese (the unsung hero) contributed to this report
Tidbits & Insights:
- Tariffs can lead to a ripple effect; different industries across the supply chain might see price changes.
- Grocery retailers might adapt with different strategies to combat these price hikes, such as multi-tiered pricing, promotions, inventory management, supply chain diversification, and open communication with consumers.
- While the focus here is primarily on food prices, other imported goods like wine, cheese, and grains could also see significant increases, further inflating grocery bills.
- The broader economic implications of these tariffs could include increased inflation and reduced consumer purchasing power, potentially shaping new consumption patterns.
- The food and drug retail industry is closely monitoring the situation, constantly updating strategies to cope with growing tariff-produced challenges. Stay tuned for updates on your favorite grocery giants!
- John Catsimatidis, CEO of Red Apple Group, warned that President Trump's tariffs wouldn't be passed on to customers in the form of higher prices in grocery markets.
- Albertsons Companies, a major supermarket chain, warned its suppliers against inflated prices due to tariffs and threatened to dispute and delay payments for invoices with unauthorized tariff charges.
- Albertsons Companies, which operates stores across 34 states and the District of Columbia, has a revenue of $80.4 billion and runs multiple well-known grocery labels, including Albertsons, Safeway, Vons, and Balducci's Food Lovers Market.
- Researchers are unsure if suppliers have come up with a plan to cope with Albertsons' new policy that refuses to pay for tariff-related costs without approval.
- Anticipation is growing that popular groceries could become more expensive due to President Trump's tariffs on goods from major trading partners, potentially affecting items like avocados, alcohol, coffee, and seafood.
