Grocery Delivery Might Become Outdated Amid Grocery Price Increase
For many Americans, the pandemic is still a high stress/anxiety period in their lives. Covid-19 has changed the way people live and more importantly feel. Therapists have recommended looking after your mental health by simply getting into a routine.
Since the beginning of the pandemic in March of 2020, the grocery shortage has been an ongoing problem. People were afraid to leave their homes to avoid getting sick and the chance of fighting over the last paper towel roll. Americans began to get into a weekly routine using grocery delivery services such as Shipt, Instacart, Amazon grocery delivery and more. 47% of Americans have regulated online grocery shopping as a weekly routine. Americans reported feeling stressed by the constant increase in grocery prices which will result in an increase in delivery service prices as well.
According to USDA, grocery prices have increased a whopping 3.0% since August of 2020. Experts predict there is no end in sight of this grocery increase. During the pandemic, there has been a supply demand as people rush to the stores to stock up in fear of another shortage and lockdown. Grocery inflation is real across the United States and thousands of Americans are paying the price for it. In March of 2020 after learning about the pandemic and lockdown to follow, people began to rush to their nearest s
upermarket clearing off the shelves. As crazy as it sounds, toilet paper was the first item to go creating a national toilet paper shortage. Supply and demand became the main reason behind the increase. (USDA: Meat, Egg Prices Set To Increase., 2017)
The Detroit Free Press reported an increase in meat, poultry, fish, and eggs. Here is a peak in price increases by item:
Photos showing the neighborhood Walmart in Clinton Township, MI.
Hot dogs: 4.8%
Pork roasts, steaks, and ribs: 4.4%
Chicken: 2.2%
Fish and seafood: 2%
Eggs: 1.6%
Cereals and bakery products: 1.2%
Alexis Maczuga, an Ann Arbor resident spoke about the price increase. "I am a stay-at-home mom, so I depend on grocery delivery service every week," said Maczuga. "It's so stressful to pack three kids in the car, focus on getting the necessary items, and monitor all three of them ensuring they don't wander off. The gradual price increase is making me realize I may have to go stop paying for delivery services altogether," she added.
For delivery services such as Shipt, members pay about $5 more on their orders than they would if they were shopping at the actual grocery store. They offer three options for delivery, one-time delivery, Shipt Passes, and Shipt Everyday which is unlimited free delivery for up to a year. Even with the options listed, the global price increase still affects the use of delivery services.
“I’ve noticed a lot of my regulars have cut down on their orders in attempt to save money,” said Tony Fairchild. Fairchild has been a shopper for the company for over two years now.
“It’s sad that customers aren’t able to get their full list of groceries because they have to cut down in order to afford the price of living nowadays,” said Fairchild. “I knew prices would go up due to the shortages because of the pandemic, but I did not think it would affect so many people. I will continue to deliver to those in the Clare/Mount Pleasant area to help in any way I can.”
According to new research, over the last 12 months, things such as groceries, gas, and rent have seen the highest increase since 2011. (Global Food Prices Rose ‘Sharply’ during 2021, 2022)
Price increases are affecting consumers who may not have had ‘wiggle room’ to begin with. Consumers are forced to limit their grocery lists to necessary items only. (Prisoners of the Frozen Economy., 2008)
“We’ve had to cut our list down substantially to adjust with the gradual price increase,” said Kimberly Henderson.
Kimberly Henderson is a teacher of over 25 years in the River Rouge school district and a Warren resident.
“I can’t even get started on the topic of underpaid teachers; we’ve had to purchase our own school supplies for students since that’s not included in the budget unfortunately. You do the math on just how tight my budget is,” said Henderson. “I have a family of four to feed on a teacher's salary along with my husband’s monthly income. We make two grocery trips a month and have a strict budget we follow due to limited income. It’s hard to decipher what gets to stay and what item does not get included in the grocery list,” said Henderson.
To eliminate some costs, Henderson and her elderly mother take a trip once a month down to the Eastern market in Detroit to purchase their monthly supply of meat from Ronnie’s Meat’s.
Amongst the overall price increase of groceries, the price of meat has gone been raised substantially. Consumers have complained that their grocery bill has almost doubled in cost. Since Fall 2020, the price of meat, poultry and fish has seen a 12% increase. (CPI Home: U.S. Bureau of Labor Statistics, 2017).
Pro Family Chef listed a couple of ways to save money on buying meat:
1. “Buy in bulk: You can save money on most products when you buy in bulk. If you have a large freezer, you can buy multiple pounds of different types of meat that can be stored in the freezer.
2. Take advantage of meat package options: Many butcher shops sell meat packages that contain various types of meat. These packages allow you to purchase different types of meat at a discounted price.
Interview of Chelsea Johnson discussing the impact of grocery inflation on her financially.
3. Ask for cheaper cuts: You can ask the butcher for cheaper cuts of meat without skimping on flavor.”
"My girlfriend and I are a part of the younger generation still learning all of the tips and tricks that the older folks do to keep their grocery bills fairly cheap," said Christopher Allen.
Christopher Allen is a student at Oakland University and a Process Assistant at Amazon in Pontiac, MI.
"We've been realizing that ever since the price increase, what saves us the most money is buying groceries in bulk from our local Sam's Club or Costco to save the amount we have to buy weekly," said Allen. "When you think about it, this price increase affects college students especially since our funds are really limited to begin with."
Darius Boyd, floor supervisor for Kroger in Warren, MI has noticed some tremendous changes happening within the store.
“In our regional meetings, I’ve noticed my general manager has been has more and more discussions about price increases that will be coming within the next month or so,” said Boyd. “I’ve noticed we’ve been going back and forth with manufacturers on when the price increase will take effect, negotiating the percent in which items will go up, and challenging whether we will continue to work with these manufacturers.”
"Accepting a price increase is never a good thing,” said Boyd. “The goal is to keep customers and happy as we possibly can, and a price increase is the last thing that’s going to do just that. The rising price of groceries may hurt our business overall because customers are going to seek out other places with the lowest prices so they can continue to feed their families.”
While prices are expected to continuously increase, there are no guesses as to where we will end up in the end. There are assumptions that minimum wage will be rising once again to help Americans combat with the rising prices of groceries and what seems to be the price of living in 2022. Grocery delivery services are expected to continue to surge in use as we continue through 2022 and beyond.
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