The National Grocers Association is claiming that big box stores and e-commerce giants have used their influence during the pandemic to further disadvantage independent grocery stores and the communities they serve through economic discrimination. In a white paper, the NGA outlines how dominant food retailers are “ignoring antitrust law and abusing their buyer power” to demand that suppliers provide lower prices and more favorable supply terms, special package offerings, and product availability, leaving independent grocers to pay the price.
“Unfortunately, this is not a new reality in the grocery marketplace for dominant firms to use their buying power to take greater control of the market and demand special treatment from suppliers without an economic justification,” said NGA CEO and president, Greg Ferrara, in a statement. “Independent grocers have been feeling the financial squeeze from these anti-competitive tactics for years, and the pandemic has brought these illegal tactics to the kitchen table of every American. As families struggle under the weight of the pandemic, the dominant food retailers are squeezing suppliers and as a result, forcing higher prices and fewer products on independent grocers and their customers. Congress has to stand up for local businesses and consumers to demand an end to these harmful tactics and restore a competitive marketplace that benefits the economy and grocery shoppers alike.”
In addition, the NGA is proposing investigations and hearings, congressional oversight, legislation, and enforcement and agency action from the government to “shine a light on anticompetitive practices” and “determine the extent to which dominant retailer bargaining leverage is imposing discriminatory prices, terms, and supply on independent grocers.”
Related: CA Grocers Association Sues Cities Over Hazard Pay Mandates; Consumers Believe Amazon Go Threatens Big Box Stores.