Grocery Stores NAICS 445110

May 14, 2025 - Albertsons' Warning to Suppliers

• One of the US’s largest supermarket operators is warning its suppliers that it won’t accept tariff-related cost increases, Supermarket News reports. An April letter from Albertsons’ head of merchandising to suppliers reads: “With few exceptions, we are not accepting cost increases due to tariffs,” adding “Suppliers are not permitted to include tariff-related costs in invoices without prior authorization by Albertsons Companies. Any invoices that include such charges without prior authorization will be subject to dispute and may result in payment delays.” Once submitted, the company will take up to 30 days to review the forms and approval is not guaranteed, per SN. While Albertsons says it sources 90% of its products domestically, even domestic purchases can be impacted by tariffs on imported ingredients. Product shortages could result if suppliers refuse to absorb losses, according to Consumer Affairs.
• In what could be the most significant overhaul to the nation's primary anti-hunger program in decades, House republicans are proposing sweeping changes to SNAP, the food assistance program for some 41 million low-income Americans, Newsweek reported in May. Proposed changes to the Supplemental Nutrition Assistance Program (aka SNAP or food stamps) include shifting costs to states, expanding work requirements, and curbing future benefit increases. The plan put forward by Republicans would impose cost-sharing requirements for states for the first time, and expand eligibility for work mandates, including for parents with school-age children, according to Newsweek. The Congressional Budget Office estimates $40 billion in savings from work requirement expansions alone. The National Grocers Association and other industry groups oppose the funding cuts, arguing they’ll affect both food access during a time of economic uncertainty and impact the US workforce. The NGA says the cuts would put heightened pressure on community grocers already operating with razor-thin margins.

• With the price of produce, seafood, and other healthy foods expected to rise due to import tariffs, experts warn healthy eating may become out of reach for many US consumers, Food & Wine reports. After announcing reciprocal tariffs on US trading partners on April 2nd, President Trump called for a 90-day pause. However, reciprocal tariffs are still expected to go into effect, and a 10% flat tariff on imported goods is already in place. Experts say that the cost of tariffs will be passed on to consumers. And even domestically produced foods are also likely to become more expensive, as US producers face labor shortages due to Trump’s immigration policies. Prices are likely to increase close to the tariff rate, meaning a 25% tariff on imports from Mexico and Canada will likely increase prices for imported foods by a similar margin, economist Shawn DuBravac told Food & Wine.
• The USDA has unveiled a $1 billion strategy to combat avian flu, protect the US poultry industry, and lower egg prices. The plan was announced after the department predicted retail egg prices would rise more than 40% this year. Its five-pronged strategy includes an additional $500 million for biosecurity measures, $400 million in financial relief for affected farmers, and $100 million for vaccine research, action to reduce regulatory burdens, and exploring options for temporarily increasing egg imports and decreasing exports. Bird flu has plagued the grocery and food retail industry for three years, driving up egg prices and causing shortages at grocery stores. In March, supermarket giant Kroger said the bird-flu outbreak caused a 70% increase in the price of eggs during the fourth quarter. Inflation, tariff threats, and egg prices are contributing to the grocery industry’s conservative outlook for the year ahead.