(FreePressBeacon.com) – In new evidence of how badly the Biden-Harris administration has damaged the US economy and American’s wellbeing, Rodney McMullen, the CEO of Kroger, disclosed the increasing strain on consumers caused by the rising costs of groceries.
He noted this trend is now extending to individuals who typically might not be as concerned with budgeting.
“The reduction of excess savings built up during the pandemic, higher interest rates and the effect of inflation are pressuring customers’ ability to spend,” McMullen explained.
He emphasized that the impact is pronounced among the most cost-sensitive shoppers.
The executive elaborated that these consumers are adjusting their shopping habits by opting for more affordable meat options, reducing their overall purchases, and prioritizing essential items.
Furthermore, McMullen shared that Kroger is actively taking steps to mitigate the financial burden on its customers by implementing various promotional strategies aimed at keeping prices low.
These include loyalty programs, personalized discounts, and fuel rewards.
This approach is reported amidst Kroger’s anticipated merger with Albertsons, which ranks as the sixth-largest grocery chain in the United States.
McMullen expressed a strong commitment to this merger, highlighting its potential benefits such as reduced prices, job security, and enhanced access to fresh and affordable food for communities nationwide.
The economic backdrop of these developments includes a significant surge in food expenses, which has reached levels not seen in three decades.
The Wall Street Journal in February noted a stark comparison.
“It’s been 30 years since food ate up this much of your income. The last time Americans spent this much of their money on food, George H.W. Bush was in office, ‘Terminator 2: Judgment Day’ was in theaters, and C+C Music Factory was rocking the Billboard charts. Eating continues to cost more … In 2022, consumers spent 11.3% of their disposable income on food, according to the most recent USDA data available,” the newspaper wrote.
In a separate report by the Federal Reserve Bank of Kansas City in April 2023, the persistent rise in food prices was highlighted as surpassing general inflation rates since the early months of 2022.
The report specified, “Food inflation has been above headline measures of inflation since early 2022. … Growth in the price of processed food has driven inflation for food at home since 2022,” underlining the ongoing economic challenge faced by consumers in managing their food expenditures amid broader financial pressures.
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