On April 11 Connecticut Senate Majority Leader Bob Duff, Senate President Pro Tempore Martin Looney, and Attorney General William Tong announced that letters of inquiry have been sent to major grocery retailers asking that they disclose their profits and costs.
The move, backed by Connecticut Democrats, was prompted by a Federal Trade Commission (FTC) report (available by clicking here) that highlighted that many larger retailers were able to increase prices during the pandemic while also improving their profit margins, even as smaller chains struggled.
“Although the study did not look at the cause of the increase in prices of groceries, ”reads a press release announcing the inquiry, “the FTC notes in its report that publicly available data suggests that the increase in grocery prices is due to stores increasing revenue, not inflation.”
The press release notes that revenues for retailers appear to have grown faster than costs, and that the FTC has concluded that additional study is necessary, saying “This data casts doubt on assertions that rising prices at the grocery store are simply moving in lockstep with retailers’ own rising costs due to inflation.”
“When grocery prices go up, it’s not just a dent in the wallet, it’s an attack on the most vulnerable,” said Senate President Pro Tempore Martin Looney in a prepared statement. “We need to peel back the layers of these price hikes. Are rising costs truly unavoidable, or are grocery store profits quietly expanding while families struggle to put healthy food on the table? We deserve answers, and a deep dive into profit margins might just reveal where savings for our communities can be found.”
“Rising costs on grocery staples are hitting all Connecticut families hard. And to think that the potential reason for them could be outsized and excessive profits rather than ordinary market fluctuations is infuriating,” said Attorney General Tong. “That’s why my Office will be requesting detailed information from these stores about their costs and what they are charging consumers. If we find evidence that the law has been violated, my office is prepared to take strong and swift action to protect Connecticut consumers.”
