Amid Rising Grocery Costs, Retailers Ask for Costs to Be Cut

rising-grocery-costThe people have spoken, and retailers have taken notice. Consumers are growing increasingly tired of rising grocery costs, and as a result are seeking out less expensive options. This has led some leaders, Galen Weston at the head of the charge, to attempt to lessen the burden by appealing to manufacturers.

Back in July, Galen Weston sent a letter to his major suppliers asking the group to cut costs by 1.45% for shipments received by the country’s largest grocery chain – a significant number, considering suppliers have implemented more than $1 billion in cost increases since 2014. In his letter, Weston’s states “Despite our efforts to absorb the costs, our low margins have forced us to pass many of these increases on to consumers on your behalf.”

Loblaws is not alone in its quest to mitigate the impacts of rising grocery costs. Other retailers have grown increasingly cautious and are developing strategies, many of which include dropping prices to deal with increasing competition across the board.

Check out more here: http://business.financialpost.com/news/retail-marketing/loblaw-sends-strongly-worded-letter-to-major-suppliers-asks-group-to-lower-costs.

What is your take on this request? Is this fair? With the hit from gas, is it fair for grocery stores to demand this of manufacturers/brands? Join the discussion on one of our social pages:

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Whatever your strategy for dealing with the effects of this change, Storesupport can help. Get in touch today by calling 1-877-421-5081.

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