Inflation Shadow Cover U.S. Food Retail Industry

Because of concerns about the economic recovery, Americans are increasingly cautious consumer. While this year’s October U.S. retail sales rose for four consecutive months, reaching 373.1 billion U.S. dollars, but economists believe that consumers may be difficult to increase sales over the past 6 months to slow the pace of growth. At the same time, an inflation wave is beginning to spread to the U.S. supermarkets and restaurants.

Including milk, beef, coffee, cocoa and sugar prices rose sharply in recent months. Including McDonald’s, KelloggCo and Kroger supermarkets and other companies have said that consumers have to bear more of the raw material costs rise.

For food manufacturers to more quickly pass on these costs is a very difficult decision. 167 in the Southern California grocery store chain StaterBros.MarketsCEOJackBrown said the company several months of breakfast cereal costs increased by 5%. Half of them passed on to consumers, the other half by cutting phone costs and delivery truck tire costs and other expenses to compensate.

SaraLeeCorp and GeneralMillsInc have been pledged to hike the prices of some products. Canceled the August release of Starbucks coffee prices remain the same statement in September that is difficult to increase the production of large glass and drink prices. Breakfast cereal manufacturer Kellogg has also recently hinted to price increases.

Grocery chains Safeway and Kroger, said the increased cost of supplier will pass on to consumers.

Domino’s Pizza is to allow consumers to determine whether they are willing to pay more money. Introduced two sizes of two pizza toppings, each priced at $ 5.99, consumers can choose to upgrade when ordering – extra $ 2 will have more fillings, but in fact prices.

Costs have pushed up because of increased demand for meat. This led to grain prices, but also promoted the chicken, steak, bread and pasta costs. Russia’s grain prices have also been drought, cultivation around the world and constantly speculation rose slightly.

Gains in food prices than the overall inflation. U.S. Bureau of Labor Statistics figures show that in September this year the year, excluding food and energy, consumer price index rose 0.8%, the lowest since March 1961 the annual growth rate. However, the food index to rise 1.4%. U.S. Department of Agriculture predicts that overall food inflation next year, about 2% to 3%.

At the same time, for many Americans, worried about the high unemployment that they look tight pockets, such as reducing the importance of brand switching to supermarket brands; eat Burger King and do not eat Applebees, or completely stopped eating out to save money.

Chicago shoppers tracking firm (ShopperTrak) recent sales of more than 7,000 stores and the number of customers were surveyed, results show that the current average consumer to a shopping mall three stores, an average of 5 in 2006 stores. Meanwhile, the decline in the number of impulse purchases. Store looks more messy, because customers are too many products under the abandoned before checkout. Among them, the biggest change in low-income Americans.

Americans are beginning to despise the brand purchased in the past, began to enter the past to avoid the mall. They are being tested business brand (brand-name) of the washing powder, beer and other products. Goodwill and other sustenance stores are attracting consumers of all income levels. Stage after accumulation of pre-paid people to buy big-ticket goods, rather than the credit card to buy.

Consumers to take the “surgical” approach to shopping – only buy the goods needed, and only when it needs to buy. Food storage room is not filled with a week of food, no wardrobe is filled with seasonal fashion. Reduction in the number of consumers to shop, whether it is a traditional store or online shopping, buy only the goods included in the shopping list.

Behavior and the rich to spend money like everyone else. They are not quickly outdated buy more watches or handbags. They even appear in a different set of clothes for formal occasions.

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