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© Provided by Business Insider Grocery stores are suffering from a shortage of products and labor. Tempura via Getty Images
- Some grocery stores are scrapping discounts to curb demand for particular products.
- It's a result of the supply chain crisis, which is squeezing retailers across the US.
- Raw material and labor shortages have to lead to long delays moving goods through global supply chains.
Grocery stores are struggling to keep shelves stocked because of the supply chain crisis, so some are cutting back on deals to help ease shopper demand.
Bristol Farms and New Seasons Market, the West Coast grocery chains run by Good Food Holdings, are among them.
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Good Food CEO Neil Stern recently told The Wall Street Journal that it doesn't make sense to have promotions for products you can't keep in stock. Moreover, customers are more likely to be happier to switch to other brands that are in stock if they don't feel they're missing out on particular deals, other retail executives told The Journal.
Grocery stores across the US are in the nightmarish position of trying to secure enough inventory to keep up with demand as global supply chains struggle. A lack of raw materials and labor has led to long delays, shortages, and rising costs. As some stores have started to stockpile the situation has only gotten worse. Some manufacturers are imposing purchasing limits to put a stop to this.
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The chief merchandising officer of grocery chain Stew Leonards recently told Insider that it's buying 50% more inventory than usual, and buying ahead whenever possible to protect its margins from rising costs.
It's a similar situation at wholesaler Associated Wholesale Grocers, which serves more than 3,000 grocers. According to The Journal, it's holding 30% more products than this time a year ago.
Some stores, such as Kroger, are securing additional warehouse space to store extra inventory, The Journal said.
But even with stockpiling, it's still impossible to keep items in stock, other retailers say.
"It's like whack-a-mole," Vivek Sankaran, CEO of grocery chain Albertsons, said on a recent call with investors. "On any given day, something is out of stock in the store," he said, per The Journal.
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Walmart, Kroger, and Other Grocery Stores Are Meeting With the White House to Address Shortages .
President Biden is meeting with leaders from Walmart, Kroger, and other grocery stores to combat potential shortages ahead of the holidays.Leaders of Walmart, Kroger, Food Lion, Todos Supermarket, CVS, and other major retailers are meeting with the White House either in person or virtually on Monday, Nov. 29 to hear about President Biden's plans to curb inflation, delays, shortages, and low supplies ahead of Christmas, Bloomberg reports.