How many of you have noticed that going grocery shopping today is actually more expensive than before. If you’ve noticed well you are correct, and if you haven’t maybe you should start looking at your receipts.
This last February the world saw the highest food increase in 36 years! The reason for the increase in prices is because the demand for groceries is at highest point. Since the global economy is rebuilding its self a new middle class around the world has emerged and they are looking for better foods for their diet. However, this demand couldn’t have come at a worse time. Food producing countries cannot meet the demands of the people because bad weather is destroying crops!
- Corn has increased by 52% and it continues to increase
- Soybean has also increased by 45% and it also continues to increase
- Pork will increase 6-7% in the remainder of the year, which is equivalent to 20 cents
- Vegetableswill increase 5% in the remainder of the year, which is equivalent to 10 cents
- Eggs will increase 5.5% in the remainder of the year, which is equivalent to 10 cents
- Milk will increase 5% in the remainder of the year, which is equivalent to 17 cents per gallon
- Beef will increase 4.5-5.5% in the remainder of the year, which is equivalent to 13 cents
The reason that I am sharing this is because I believe that we should all prepare ourselves for what is to come. So my fellow grocers, if you are in a tight economic spot right now don’t forget to look in your mail, local newspaper or local grocery store for coupons on certain items to save money because prices are going to continue to increase and consumer wages aren’t.
Author: Luke Henry
Luke Henry is a Project Manager of Retail Next – a cloud-based POS solution for specialty grocers. He has over 10 years of experience in the grocery POS space and is committed to delivering solutions that enable independent grocers across the world to compete against the grocery conglomerates.