Brett Boyd, owner of the Market House grocery store, said he blames the fuel prices as the largest reason for his store’s price increases.
“Our food, unfortunately, can be shipped up to three or four times before it hits our shelf,” he said. “The unfortunate thing for the customers is that they’re at the end of that line, and it takes fuel at every one of those steps.”
He said Market House supplements the fuel cost by pushing suppliers to offer better deals.
“We’re being very, very, very aggressive right now with our suppliers because of those increases,” he said.
Even so, a large share of Market House’s profit margins have decreased, and the store sells some items at a loss during specials.
“There’s times you just can’t stomach making a price increase on something so you just hold your prices,” he said.
But as stores raise some prices, customers find their own ways of compensating.
Some say they spend most of their food budget on basic items like milk, eggs and bread, thus leaving less money for their other favorite foods, whether produce or potato chips.
Others customers switch from national brands to generic brands like Spartan Foods, which Boyd said usually run 15-20 percent cheaper.
Wal-Mart customer Jen McCallister said she’s making strides to reduce her gas consumption, pointing to a “For Sale” sign in the window of her Jeep.
[Full story here.]
