Big grocery stores have come under fire from U.S. Sen. Elizabeth Warren for rewarding executives and shareholders while raising food costs for Americans.
Warren, D-Mass., sent a Dec. 14 letter to the CEOs of Kroger, Publix and Albertsons, asking the group to answer by Jan. 7 for their companies’ decisions during the pandemic and how those decisions are affecting customers and workers.
“Large grocers are blaming high food costs on inflation, but it’s time to talk about how they’re using every opportunity to rake in profits, reward executives and big shareholders, while driving up prices even more,” Warren said in a news release. “These companies made record profits during the pandemic and, when faced with the choice to retain lower prices for consumers and properly protect and compensate their workers, they greedily granted massive payouts to top executives and investors. They need to answer for these actions.”
In 2020, Kroger, Albertsons and Publix reported increased profits and net income compared to pre-pandemic levels, according to the release. Now, Warren said in the release, those retailers are pushing grocery cost increases onto consumers, “blaming it on inflation, and lining the pockets of executives and investors.”
The Biden Administration has also pushed large retailers in recent weeks on the topic of supply chain disruptions.
In November, the Federal Trade Commission (FTC) announced a probe into the grocery industry, asking Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane Co., Procter & Gamble, Tyson Foods and Kraft Heinz to give “detailed information to help the FTC shed light on the causes behind ongoing supply chain disruptions and how these disruptions are causing serious and ongoing hardships for consumers and harming competition in the U.S. economy.”
Questions to grocery executives in Warren’s letter were:
- To what extent has your company met or exceeded profit goals during the pandemic?
- By food category, how much did the average wholesale price per unit paid by your company increase in fiscal year 2021?
- By food category, how much did the average retail price per unit paid by consumers at your store increase in fiscal year 2021?
- Has your company increased wages during the pandemic?
- What is your expected compensation, including your base salary and all bonuses or incentive payments, in 2021?
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