Written by Bernie Carr
Just a quick post today to share something interesting I came across.
We all remember what happened a year ago when consumers started stockpiling toilet paper, sanitizer, canned goods during the COVID-19 lockdowns. Stores could not keep up with the demand and we all saw empty shelves at the stores. Most supermarkets use the just in time inventory systems which means stores only keep enough supplies to last until the next truck delivery. This year, supermarkets are the ones that are stockpiling products such as frozen meat, sugar, packaged goods, cleaning supplies, etc.
Why are stores stockpiling?
According to the Wall Street Journal, stores are buying supplies and storing them as executives are expecting prices to rise even higher. They are stocking up at today’s prices to protect their profit margins, as well as keeps costs down.
Grocers are also buying ahead to keep up with increased demand. In addition, they have had to contend with shipping issues, higher transportation costs, and supply shortages.
What does this mean for the consumer?
If grocers are expecting prices to rise, this means we will all be feeling more pain at the pocketbook. As we have previously covered, U.S. inflation is at the highest level in 13 years. As prices of goods keep rising, stores will eventually be forced to pass along the higher cost to us. We are already seeing this.
Makes you wonder how bad inflation is about to get. It may not be a bad idea to start a stockpile of your own. Below is a further discussion on potential implications for consumers.
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About the author:
Bernie Carr is the founder of Apartment Prepper. She has written several books including the best-selling Prepper’s Pocket Guide, Jake and Miller’s Big Adventure, The Penny-Pinching Prepper and How to Prepare for Most Emergencies on a $50 a Month Budget. Her work appears in sites such as the Allstate Blog and Clark.com, as well as print magazines such as Backwoods Survival Guide and Prepper Survival Guide. She has been featured in national publications such as Fox Business and Popular Mechanics. Learn more about Bernie here.
