Greg Ferrara, president of the National Grocery Association, explained the factors contributing to rising food prices in an interview with FOX Business Network's Edward Lawrence.
of Grocery Store Industry Some politicians have accused retailers of price gouging as consumers continue to struggle with persistent inflation, but the head of a trade group representing independent grocers disputes those claims.
FOX Business Network's Edward Lawrence spoke with Greg Ferrara, president and CEO of the National Grocers Association, who explained that grocers' net profit margins are being squeezed by rising labor costs and inflationary pressures that ripple through the supply chain.
“Our members are not publicly listed companies, but in 2023, their net profit margins were 1.4%, meaning that within the transactions they are dealing with, their margins are very low. Inflationary pressures Or they have to deal with rising labor costs,” Ferrara said.
“Labor is a big driver” of the price hikes that are hitting consumers, he explained, adding: “Wages have risen significantly since before the pandemic, but commodity prices have also risen significantly and, although they have come down a bit, they remain elevated.”
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Greg Ferrara of the National Grocers Association denied allegations that grocers were price gouging. (Scott Olson/Getty Images/Getty Images)
“These are tough times for supermarkets and they are doing everything they can to keep prices low and ensure products are available to customers. Aggressive sales to help consumers “Because they know people in the market are in need, they're feeling the economic pressures, and they want to help them,” Ferrara said.
Ferrara also spoke about some of the backlash independent grocers have experienced following allegations of price gouging by grocers. Vice President Kamala Harris Senator Elizabeth Warren (Democrat, Massachusetts), etc.
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Ferrara said grocers are trying to keep prices low for consumers and are aggressively running sales. (Tom Williams/CQ-Roll Call, Inc via Getty Images/Getty Images)
“I think rhetoric matters and I think all elected officials and politicians need to be really careful about what they say because unfortunately, we're seeing in some grocery stores, regular people calling employees and yelling at them, using vulgar language, accusing them of ripping off and stealing, and of course that's not what's happening,” he said.
“These are community stores. These are people who live in the community. It's irresponsible that they face that kind of backlash and abuse,” Ferrara said. “I think this is really important to us.” Elected Officialsand we said this to make sure we remember what you're saying and that it's backed up by facts. And unfortunately, what's been said recently is not backed up by facts.”
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