Grocery stores seeing near historic prices but grocers paying too

Local News

SAN JUAN, Texas – If you plan on going grocery shopping soon you might want to take some extra cash with you.

We have been following the increase in the price of meat but grocery stores are seeing an increase in a variety of items.

Some of those items include paper goods, cleaning products, milk, eggs, and produce.

Many of these items shoppers ran out to purchase during shelter in place orders.

“When there is that much demand for a certain item, that drives up prices,” says Elizabeth Chavez-Palacios, Public Relations Director, Junior’s Supermarkets.

Palacios says that demand has caused a kink in production.

“Higher production means higher transportation cost and so higher employment cost as well all of these cost ends up getting transferred onto the consumer,”  says Palacios.

While prices are high grocers are not cashing in like you would think.

Palacios says profit margins have remained the same at 1-2 percent, in all the nearly 4 decades Junior’s has been in business.

The National Grocers Association issued us this statement.

As this global pandemic continues, we are seeing events and issues that may impact the cost of commodities and food products moving forward. Despite the unprecedented situation brought on by this public health crisis, independent grocers often grapple with increased energy, packaging, labor or commodity costs.  Grocers are working with their suppliers to mitigate price increases to the best of their ability and keep prices as steady as possible, but processing plant disruptions along with the surge in demand will have an impact on costs of goods and in turn consumers may experience higher prices on some products. As costs rise from producers and the supply chain, our members are following the same pricing structures and policies as they always have.

Palacios says grocers are stuck paying extra cost to cover insurance, liability compensation and Workers’ compensation. Palacios adds they stand together with the community they have been a part of for nearly 40 years and hope to be a part of for 40 plus more.

“Let our area know it’s not something that’s being done purposefully but rather this is going to be our new norm unfortunately.”  says Palacios.

Palacios says not all cost are COVID-19 related and there has been an increase in the cost of living but the virus has highlighted those increases.

To find Junior’s Supermarkets in the Rio Grande Valley, click here.

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