MAY 2023
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2023 Grocery Industry Update By Bryan Wachter
S WE GEAR UP FOR THE SUMMER SEASON, many families are feeling the financial impact of rising grocery prices. Memorial Day typically marks the start of the outdoor gathering and barbecue season, and with more trips to the grocery store, families are feeling the pinch. While it may seem like there’s some relief on the horizon with grocery inflation leveling off, unfortunately, it won’t happen immediately, and consumers will still be feeling the impact of higher prices throughout the summer. According to the industry publication Grocery Dive, many of our grocery staples saw a decrease in their Consumer Price Index (CPI) in March, with eggs down nearly 11 percent. Most other grocery items were down zero to two percent. Some of this reduction, especially in eggs, came as the supply chain caught up from the Avian Flu outbreak earlier
Bryan Wachter this year. Unfortunately, some of the cost increases felt by consumers over the past year are going to be harder to reverse. The US Government Accountability Office recently reported that a contributing factor to rising costs of goods comes from higher labor and transportation costs. Higher prices are not deterring customers from food at home purchases. In their recently released 2023 U.S. Grocery Shopper Trends Report, The Food Industry Association found consumers are purchasing the same number of food items and are, instead, looking for deals across multiple stores, up to 5.2
from 4.9 different stores, or choosing private label items over name brand. What is most concerning for retailers as this season of high-cost groceries continues is public perception of corporate profits. In February the Dunnhumby Consumer Trends Tracker found that consumers overestimated inflation by double in late 2022, 24.3 percent versus the actual 12 percent. In addition, consumers also overestimated grocery retailers’ profits at 35.2 percent, compared to an actual rate closer to 2.5 percent. Groceries aside, we’re
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INSIDE 2023 Nevada Pharmacist Day at the Capitol....................2 Reforming PBMs in Nevada..................................3 Organized Retail Crime...........4 Running for Office in 2024......................................5 Stop PBM Manipulation............................8 The Importance of a Healthy Workforce................9