Grocery Stores Feel Crunch of Fuel, Labor Costs Ahead of Memorial Day

Summary

Stew Leonard Jr., CEO of Stew Leonard's, discusses grocery sales ahead of Memorial Day, noting customers are buying but complaining about high prices. He highlights cost pressures from fuel and labor, and predicts meat and fuel prices will eventually decline, while labor costs remain sticky. Consumers are trading down to cheaper protein options.

• Grocery sales are brisk but customers are complaining about prices.
• Stew Leonard's prices are up about 3% year-over-year, partly due to higher input costs.
• Labor costs are high and not expected to come down, adding inflationary pressure.
• Meat prices are expected to fall as the U.S. cattle herd rebuilds from a 50-year low.
• Fuel prices are predicted to decline after the Middle East conflict is resolved.
• Consumers are switching from expensive cuts like ribeye to cheaper proteins like chicken and pork.
• Supply shocks like drought and avian flu have affected specific food items (e.g., eggs, tomatoes).