December 20, 2021

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

Text of Letters (PDF)

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. 

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