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Supply chain interruptions, extreme winters, and Omicron prevalence causing empty shelves in grocery stores

Supply chain interruptions, extreme winters, and Omicron prevalence causing empty shelves

The arrival of the New Year has done nothing to alleviate ongoing food shortages. Constraints at grocery shops across the country have worsened in recent weeks as omicron spreads and winter storms add to supply chain woes and manpower shortages. The shortages are prevalent across the country, affecting produce and meat as well as packaged staples like cereal.

While products are becoming more difficult to come by, many are also becoming more expensive due to rising inflation. According to the Labor Department, the consumer price index increased by 7% last year, the fastest rate since 1982. This is up from 6.8% in November, which was a near four-decade high.

During Albertsons’ earnings call with analysts on Tuesday, CEO Vivek Sankaran discussed supply chain problems. According to him they’ve all learnt to manage it as a company. They’ve all learned to keep the stores looking nice, and to provide the customers as many options as possible.

The supply chain shortages due to Omicron, according to Curt Covington, senior director of institutional financing at AgAmerica, are intermittent and vary. According to Curt shortages vary by item, store, and geographic region and they are caused by a variety of variables, including supply chain challenges, consumer behavior, and environmental conditions. Thus, it makes it difficult to predict who will be affected next.

For more details, check out the link; https://finance.yahoo.com/news/grocery-stores-still-empty-shelves-134952506.html?guccounter=1

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