BELLINGHAM, WA (MyBellinghamNow.com) – A new report from the Federal Trade Commission (FTC) finds large grocery chains likely used supply chain disruption and reports of inflation as cover to increase profits.
The report is based on data the commission demanded from Kroger, Walmart, Amazon and other large grocery chains in 2021.
Large companies were found to have been better able than smaller firms to protect their supply chains from disruptions. They did that in some cases by threatening fines and otherwise pressuring suppliers to favor them over rivals.
Some big players also considered buying up manufacturers, which could further concentrate supply chains in the future.
The report also found that grocery retailer revenues grew to 6% over total costs in 2021 and 7% by 2023.
The commission said that casts doubt on some companies’ claims that rising prices for consumers reflected their own increased costs.