Warren Calls Out Big Grocery Chains for Putting Company Profits Over Customers
As Grocers Rake in High Profits, They Reward Executives with Bonuses and Stock Buybacks While Passing on Costs to Consumers with Soaring Food Prices Ahead of the Holidays
Washington, D.C. — United States Senator Elizabeth Warren (D-Mass.) sent a letter to the CEOs of Kroger, Publix, and Albertsons calling on them to justify rewarding executives and shareholders while raising food costs for American families. Even as grocers blame inflation for high food costs, these companies have raked in record profits and rewarded executives with massive bonuses and stock buybacks. Warren is seeking information on steps these large grocers are taking to protect consumers or whether they are putting profits over consumers in the midst of a public health and economic crisis.
“Large grocers are blaming high food costs on inflation, but it’s time to talk about how they’re using every opportunity to rake in profits, reward executives and big shareholders while driving up prices even more. These companies made record profits during the pandemic and when faced with the choice to retain lower prices for consumers, and properly protect and compensate their workers, they greedily granted massive payouts to top executives and investors. They need to answer for these actions,” said Senator Warren.
Grocery chains have reassured investors that only consumers - not company profits - would be hurt by rising costs, all while continuing to spend billions on stock buybacks and executive pay. In 2020, Kroger, Albertsons, and Publix reported increased profits and net income compared to pre-pandemic levels. Now they are pushing grocery cost increases onto consumers, blaming it on inflation, and lining the pockets of executives and investors. Kroger CEO Rodney McMullen even told investors “a little bit of inflation is always good in our business.” Kroger and Albertsons have meanwhile padded their bottom line even more by depriving frontline workers of hazard pay and failing to adopt necessary workplace safety precautions.
In her letter, Senator Warren urged these companies to support essential workers that put themselves and their families at risk throughout the pandemic and ensure they have proper protections, rights, and compensation. Senator Warren has also pushed Congress to act on her Essential Workers Bill of Rights which would bolster workplace protections for essential workers throughout the pandemic.
Senator Warren is asking the CEOs to answer for their companies’ decisions during the pandemic, and how they are affecting customers and workers by January 7, 2022.
As a champion for American consumers and a secure and healthy economy, Senator Warren has continued oversight of corporations for their roles in jacking up prices for American consumers and driving inflation.
- Senator Warren called on Secretary Raimondo to use CHIPS for America Act funding to push back against industry consolidation in the semiconductor industry, address supply-chain resiliency, and bolster competitiveness in the industry. The global chip shortage has resulted in significant price increases for American families and contributed to the recent increases in inflation, as well as job losses due to auto plant shutdowns.
- Senator Warren slammed Hertz’s $2 billion dollar buyback plan, which would line the pockets of company executives and the private equity firm Apollo Global Management, while they raise rental car costs for consumers.
- Senator Warren called out the 11 energy companies that are inflating natural gas prices for consumers while reaping record profits.
- Senator Warren called on the Department of Justice to investigate the poultry industry’s anticompetitive behavior as turkey and chicken prices have soared.
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