Supermarkets have started stockpiling food to protect their profits amid higher supply chain costs, growing consumer spending and inflation rising to its highest level in 13 years.
Retailers are currently buying up to 20 percent more supplies than usual as they anticipate prices continuing to rise and want to stock up on as much as they can while it's cheaper.
Recent data from the US Department of Agriculture revealed the consumer price index for grocery store and supermarket food purchases was up 0.7 percent in May compared to May of last year.
Numerous household staples have been impacted with bacon 14 percent more expensive and milk and oranges climbing 8 percent higher.
Supermarkets have started stockpiling food to protect their profits amid higher supply chain costs, growing consumer spending and inflation rising to its highest level in 13 years. Empty shelves in a Save Mart as shoppers spend more than this time last year, depleting shelves
David Smith, CEO of the US's largest wholesaler Associated Wholesale Grocers, told the Wall Street Journal they have been buying 15 to 20 percent more goods - particularly packaged foods with long shelf lives.
'We're buying a lot of everything. Our inventories are up significantly over the same period last year,' said Smith.
At SpartanNash in Michigan, the retailer has bought up around 20 to 25 percent more than normal including frozen meat.
CEO Tony Sarsam said the 'uniquely inflationary period' has caused 'a feeding frenzy.'
Some retailers, including Ahold Delhaize USA, are even expanding their warehouse space so they can stock up on even more goods.
Ahold Delhaize USA, which runs the Food Lion and Stop & Shop chains, has bought up 20 percent more stock of paper and cleaning products.
The recent spike in prices and need to stockpile comes as several factors are pushing up costs all the way from farm to store.
Shoppers are spending more on groceries, with Jefferies and NielsenIQ data showing US grocery sales were 15 percent higher in the week ending June 19 2021 compared to the same week in 2019, before the pandemic hit.
Sales were also .5 percent higher compared to this time last year when fears of the virus led shoppers to go into a panic-buying frenzy.
This rise in sales is leaving supermarket shelves depleted, forcing stores to increase their inventories to keep up with demand.
Additionally, retailers are being pushed to stockpile due to concerns that food prices will continue to surge.
Supply chain issues have been pushing up prices with labor shortages putting
