Rising Prices Become Food Retailers' New Best Friend

Merrefield, David
July 2007
SN: Supermarket News;7/2/2007, Vol. 55 Issue 27, p12
The author comments on the impact of inflation on supermarket retailers in the U.S. According to the author, inflation can be advantageous or disadvantageous to supermarket chains. It could be disadvantageous if inflation increases product procurement costs but retailers lack sufficient pricing power to pass those increases on the consumers. On the other hand, if consumers recognize that retailers have good reason to increase prices, they are prone to accept increases and pay them.


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