Albertsons supermarket chain warns suppliers company is 'not accepting cost increases' over Trump's tariffs

[Yo_Mama_Been_Loggin]

North America’s second-largest supermarket chain is warning its suppliers that it won’t allow price hikes due to President Trump’s tariff spree.

Albertsons, which operates over 2,200 grocery stores — including Balducci’s, 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]

1. Yes, but more we are going to see the costs of tariffs added to the prices in stores which don't have the weight

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]

8. They left themselves a large loophole.

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]

2. But will they be getting deliveries?

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]

3. That's not how it works.

[Midnight Writer]

4. Albertsons' statement sounds as unhinged as a Trump Executive Order.

I expect reality will bite them on the ass.

[dobleremolque]

5. So, this is the classic

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]

6. This is bluster...they will have to accept the new cost structures

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]

7. Good luck with that

Are the suppliers going to eat the cost out of their margins? Yeah right.

[republianmushroom]

9. Repukes, want to guess who is going to

accept the cost of trumps tariffs ?