Egg Prices Soar, Grocers Scramble to Keep Shelves Stocked
Egg prices have skyrocketed to record highs, but supermarkets are employing various strategies to mitigate the impact on shoppers.
Wholesale Prices Hit Record
Wholesale egg prices have reached an unprecedented $8.15 per dozen, the highest since 1985. This surge is primarily driven by an outbreak of avian flu that has decimated laying hen flocks across the United States.
Grocers Absorb Costs
Despite the wholesale price spike, grocery stores are absorbing a significant portion of the costs to keep egg prices affordable for consumers. They recognize the importance of eggs as a dietary staple and seek to maintain their customer base.
Loss Leaders and Promotions
Historically, milk and eggs have served as "loss leaders," sold below wholesale costs to attract shoppers. Grocers have continued this practice, offering discounts and promotions on eggs.
Market Loss Concerns
Empty egg shelves can lead to shopper dissatisfaction and lost market share. To avoid this, some retailers are limiting purchases to curb stockpiling and ensure availability.
Loyalty Programs and Incentives
Grocers are also using loyalty programs to incentivize customers to spend more. They offer reduced egg prices or rewards points for purchases over a certain amount.
Demand Remains Strong
Despite the price increases, egg demand remains robust. This is partly due to the recent discovery that eggs may not be as detrimental to cholesterol levels as previously thought.
Future Outlook
Egg prices are expected to continue increasing due to the ongoing avian flu outbreak and strong demand. Grocers will likely adjust their strategies accordingly, seeking to balance customer expectations with their own financial constraints.