Looking for someone to blame for increased costs in the grocery aisle?
A Federal Trade Commission report determined Kroger, Walmart and Amazon “accelerated and distorted the negative effects associated with supply chain disruption” You might not need to look any further than three retail giants, the Federal Trade Commission said
“As the pandemic illustrated, a major shock to the supply chain can have cascading effects on consumers, including the prices they pay for groceries,” said FTC Chair Lina M. Khan said in a statement. “The FTC’s report examining U.S. grocery supply chains finds that dominant firms used this moment to come out ahead at the expense of their competitors and the communities they serve.”
Manufacturers of scarce items reduced promotional spending, thus reducing smaller retailers’ ability to offer items at temporary discounts — a method they use to compete with the “everyday low price” strategy used by retailers big enough to negotiate low wholesale prices with manufacturers. The latter prices were less affected by pandemic-related disruptions than promotional spending was, the FTC report said..
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