On the subject of the impact of tariffs on the industry, and the degree to which higher grocery prices are stressing out a large percentage of shoppers, one MNB reader wrote:
We’re going to see some grocers yoyo pricing as they try to keep up with what they’re paying for inventory from week to week.
We’re going to see smaller and smaller packages reflecting the larger pack size retails.
And I predict that we can predict which retailers will take more margin if/when their costs go down. Much of the population does not have competing banners where they live so they will get hit the worst and they can least afford it.
MNB reader Steve Rash wrote:
Inflation and stress over grocery prices have always existed for parts of the population. What’s more concerning, to me, is that people are using Buy Now Pay Later (BNPL) for restaurant meals and food delivery. Crazy. The era of instant gratification is fueling this. Basic financial literacy is no longer being taught in schools and at home. If I were an employer I’d offer basic financial education to all my employees, but especially target those in the lower income bracket.
Another MNB reader wrote:
My thoughts are 50% of people have ALWAYS been stressed about food prices.
From another MNB reader:
Holy hysteria! Proof-positive of how successful the Democrats have been at creating mountains out of molehills . . . so far, at least.
Why is it that when Democrats point out inflation under a Republican president, it is creating mountains out of molehills, but when a Republican criticizes a Democrat for inflation, is is entirely legitimate criticism?
Not taking sides. Just asking.
Reacting, I think, to my coverage of and commentaries about these issues in general, one MNB reader wrote:
Spoken like a true liberal Northeastern Democrat. You just want Trump to fail.
Nice of you to reduce me to a geopolitical stereotype. I’m not sure where you are from, nor how you are registered to vote, but I wonder how you would feel if I did the same thing to you – in other words, not take seriously any criticisms or comments you might make about public policy issues. (Not that you made any actual criticisms of my comments. You just took a shot and reduced me to a stereotype.)
But that’s okay. I can handle it. I’ve been called, far, far worse. Yesterday.
I don’t want anyone to fail, at least not in a knee-jerk fashion. But when I disagree with policies because I don’t think they are in the best interests of the country and especially not in the best interests of the industry and people I cover, I think it is my job to criticize. And, by the way, do so in a way that I hope allows for respectful, nuanced conversation.
If people want to stereotype my characterizations, or characterize my opinions in an overly simplistic way, or accuse me of having some sort of derangement syndrome … well, that’s their privilege. Free speech. I respect it.
From another MNB reader, on the subject of White House influence over the Bureau of Labor Statistics (BLS):
This story reminded me of an internal discussion I’ve had regarding the failures of capitalism, the conflicts between self-interest and cooperation as it relates to the invisible hand. The idea that some widely accepted truths about our economy are merely assumptions, ones that may actually distort how the economy should function
There is research that shows…alone, a selfish organism outcompetes. But, as a group, those with less selfish individuals outcompete. Selfishness undermines group welfare and becomes a cancer.
The problem isn’t with markets themselves, but with the way they’re structured. History shows that government control of production and supply can be just as problematic – if not worse – than the issues we see in today’s capitalist systems.
Still, rather than corporatism, whereby fewer companies dominate production/supply, and fewer employees dominate the payroll (wage gaps), we need more coops, esops…to deal with the problem of individual selfishness and excessive accumulation of wealth. We can see some examples here in the grocery sector – Publix is an ESOP, successful wholesale coops like AG New England, Assoc Food Stores, Assoc Wholesale Grocers…
The idea that ‘greed is good’ doesn’t have to define capitalism or free markets. But we (specifically, Friedman and figures within the Reagan administration) did just that when we framed a company’s primary goal as “maximizing shareholder wealth.” In other words, a non-optimal (from society’s perspective) ideology was created and reinforced.
Last week, we reported that Albertsons reportedly has signed on to participate in a new health tracking system – a collaboration between the federal government and technology companies dubbed “Make Health Technology Great Again” – that is touted as building “a smarter, more secure, and more personalized healthcare experience.” The main focus is on promoting an interoperability framework that will “easily and seamlessly share information between patients and providers,” as well as “increasing the availability of personalized tools so that patients have the information and resources they need to make better health decisions.”
I commented:
These folks have to earn people’s trust before they can expect them to opt in. Earn. Not expect. Just because they say they won’t abuse or try to monetize my data doesn’t mean they won’t.
Inevitably there will be a political component to any resistance – there will be folks for whom any advocacy by Health Secretary Robert F. Kennedy Jr. will immediately add to their skepticism. In many corners, he is seen as unreliable, especially this week, when he pulled $500 million this week that was supposed to be devoted to the development of new mRNA vaccines, technology that in 2023 won a Nobel Prize in Physiology or Medicine and that President Trump called a “medical miracle.” (His Operation Warp Speed, which during his first term accelerated the development of Covid vaccines that helped attenuate the pandemic, is something of which he should continue to be justifiably proud.)
One MNB reader wrote:
On the Albertsons story – this smacks of bending the knee and is meant only to curry favor. My bet is that it will never happen. Even so, ever hear of Big Brother?
I think that the bended knee characterization certainly is a fair assessment. But I wouldn’t bet that it won’t happen.
Regarding the ongoing problems at Market Basket, one MNB reader wrote:
The chains in New England missed their opportunity to take advantage of the customer boycott the last time at Market Basket. With Aldi and Walmart more mature is there anyone in the business who doesn’t see this iteration as cataclysmic? I don’t think Shaws / Star Market has gotten much more competent , but in this business even a little bit better in the mid market, with superior high end and low end options will kill MB.
No new owner will value the employees and customers as much. Paying off the debt incurred last time has eroded MB’s cost advantage. I have watched the long decline/transition of Giant Eagle from a distance (I worked for Laura Karet when she joined the company). MB will not even make 5 more years as an independent company at this rate.
And from another:
Regarding the Market Basket/DeMoulas fight….Arthur T. is an excellent retailer, operator, and food merchant. Many employees seem to respect him and are loyal to him. But, that does not mean he owns the company. He owns 28% and reports to the Board and the other shareholders. If he does not like that arrangement then he should make sure he owns 51% of the stock.
Unless he does that, the Board’s requests to approve major capital expenditures, approve his successor (not just put his kids in place), and to want to see a budget are entirely reasonable. Not only are these requests reasonable, it is the Board’s fiduciary responsibility to expect them. Arthur T. is a smart guy and knows what he needs to do – buy enough stock to get to 51%….if his sisters will sell it to him.
I’m not sure they will. Because some other company will sweep in there in a couple of years, willing to spend a lot more than Arthur T. Demoulas can.
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