The empty grocery store shelves at the beginning of the pandemic caused anxiety and worry for the future. Fast forward to today, and things still are not back to normal. Unfortunately, it may be a long time before balance returns.
Grocery demand remains higher than pre-pandemic averages, while supply continues to be problematic in many areas. Coupled with rapid growth in e-commerce, worker shortages, production shortages and more — the equation adds up to higher prices and fewer choices for shoppers.
The pandemic lockdown led to more grocery shopping and eating at home at the expense of dining out. Statistics from the Food Industry Association (FMI) show the typical shopper spent an average of $113.50 per week on groceries in 2019. Throughout the pandemic, that increased to $161 per week. The average is $143 per week today. People continue to eat at home more than they did before, even as restaurants have reopened and restrictions have eased in much of the country.
At the same time, it’s harder than ever for grocers to stock shelves with the quantities and varieties shoppers anticipate. “Supply chain disruption” has become a common phrase on the evening news. Multiple factors are to blame.
Rising demand across many industries has stretched the freight market to its limits. Protracted delays and backlogs at shipping ports, with container ships waiting in line for weeks to be unloaded, are keeping internationally sourced products and ingredients from reaching their destinations. Time is money — if it takes more time and costs more money to move goods around the world, we will see prices increase.
Transportation is the next link in the supply chain, and it’s overburdened, as well. This means that even once goods are unloaded, ports are struggling to move them. Warehouses and trucking companies are plagued with vacant positions they cannot fill as easily as before. The labor market has become very competitive as companies look for innovative recruiting and hiring solutions.
As a result of all these factors, grocery prices are rising at a rate the United States has not experienced in many years, and many familiar products are harder to procure. In most cases, higher prices are unavoidable. However, local grocers are working with suppliers and wholesalers to stock shelves with additional brands and products.
All of us — grocers, wholesalers, suppliers, customers — are faced with a new normal. With innovation and experimentation, and a great deal of patience and understanding, the grocery industry will continue to help its customers put food on the table.
Richard Driskell is director of FireLake Discount Foods in Shawnee, Oklahoma.
