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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsAlbertsons supermarket chain warns suppliers company is 'not accepting cost increases' over Trump's tariffs
North Americas second-largest supermarket chain is warning its suppliers that it wont allow price hikes due to President Trumps tariff spree.
Albertsons, which operates over 2,200 grocery stores including Balduccis, Kings and Acme in the New York area, blasted out a missive to its suppliers late last month, explaining that suppliers must get authorization for significant price hikes.
With few exceptions, we are not accepting cost increases due to tariffs, stated the letter, first uncovered by American Economic Liberties Project researcher Matt Stoller.
Suppliers are not permitted to include tariff-related costs in invoices without prior authorization by Albertsons Companies, the Idaho-based chain added, Any invoices that include such charges without prior authorization will be subject to dispute and may result in payment delays.
https://www.msn.com/en-us/money/news/albertsons-supermarket-chain-warns-suppliers-company-is-not-accepting-cost-increases-over-trump-s-tariffs/ar-AA1DID2s
Sounds like we're going to see a lot of empty shelves at Albertsons and Safeway then.

Ms. Toad
(36,763 posts)to toss around that Albertson's does. So because Albertson's controls so much of the market, Suppliers will bend to their will - but you know darn well they aren't going to eat the prices. They will shift them to buyers who can't just put their feet down and say "no."
Igel
(36,742 posts)Actually, just a reasonable stipulation.
"Without authorization."
That way Albertson's can verify/check that the price hikes are because of tariffs, alternative sourcing can't be found, etc. Some things like coffee--no way around them.
Personally, I'd like to see soybeans on the store shelves more often--and they shouldn't be subject to tariffs, right? (I mean, you can always make natto, but they're just fine in stews, casseroles, even spiced up and curried.)
getagrip_already
(17,705 posts)It will be cheaper for suppliers to just cancel contracts then to deliver at a loss.
When their shelves are empty, they wont be making any money.
Scrivener7
(55,545 posts)Midnight Writer
(23,823 posts)I expect reality will bite them on the ass.
dobleremolque
(1,004 posts)lose a few cents on every sale but make it up in volume?
It will be interesting to see how this shakes out. As a middleman, you can't really lose money on every transaction and still stay in business. But you also can't fail to move your goods on to the retail outlet for consumer purchase, and still stay in business.
Prairie Gates
(4,974 posts)The suppliers aren't going to take a significant haircut just so Albertson can keep making the same amount of profit.
I read this basically as saying "Send us a memo that explains your new costs," which is reasonable. But they are going to have to accept the new costs. Or they're just not going to be supplied.
newdeal2
(2,412 posts)Are the suppliers going to eat the cost out of their margins? Yeah right.
republianmushroom
(19,699 posts)accept the cost of trumps tariffs ?