Supermarket Sweep: National Grocers Association rep explains consolidation in the grocery industry

A representative from the National Grocers Association joined RFD-TV’s Market Day Report as we explore the impacts of consolidation within the grocery industry on the affordability and availability of food products.

The recent 0.5 percent increase in the Producer Price Index for September has drawn attention to the shifting economic landscape. For context, we turn to Chris Jones, Senior Vice President of Government Relations and Counsel for the National Grocers Association, who shared his valuable insight into the dynamics influencing product affordability and availability on grocery store shelves on RFD-TV’s Market Day Report.

In his interview with RFD-TV’s own Susan Alexander, Jones provided a perspective on the impact of consolidation in the supermarket industry. He acknowledged that while consolidation has brought challenges, it has also created operational efficiency in the grocery supply chain.

“A recent estimate indicates that a significant 69% of all U.S. grocery sales flow through the top four grocery chains,” Jones said. However, this concentration of sales raises concerns for smaller players.

Jones also touched on the regulatory environment and its influence on consolidation. He pointed out that the decline in the enforcement of antitrust laws—meant to ensure a level playing field—actually gives large retailers an incentive to consolidate. This convergence, he believes, aims to streamline the supply chain, potentially benefiting consumers.

“One reason for consolidation is the regulatory environment,” Jones said. “The enforcement of antitrust laws, meant to ensure a level playing field, has seen a decline.”

Related Stories
Global food prices inched upward for the third consecutive month according to the latest FAO Food Price Index. While some Americans struggle to source their next meal, others are ordering high-priced food delivery straight to their door more than ever before.

LATEST STORIES BY THIS AUTHOR:

More than 80 dairy herds have been infected with the virus across 11 states since late March.
As hog prices face potential decline, pork producers are dealing with a surge in litter rates, complicating efforts to control production.
In February, farmers experienced a slight increase in prices, though it fell short of surpassing last year’s numbers.
According to a new USDA-ERS report, technological advancements in agriculture led to significant output increases while reducing input usage for producers.
The prospect of reintroducing grizzly bears in Washington’s North Cascades has ignited a contentious debate, pitting conservation efforts against the concerns of local farmers and ranchers.
As peach trees bloom ahead of schedule and unpredictable weather patterns loom, farmers across the nation find themselves grappling with the precarious risks posed to their fruit crops.