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.”