1. With tariffs on imported goods a possibility in the coming year, how do you think implementation would impact your business? Are you developing an internal contingency plan to better prepare for the higher cost of goods?
2. With the metrics telling us that the economy is relatively stable, why do you believe food prices are perceived as still being too high? How can retailers (and vendors) help change that perception?
3. Retail shrink via shoplifting. Has the situation improved over the past year? What are you doing internally to help mitigate the situation? What more needs to be done?
Bob Gleeson
SVP-Marketing and Merchandising
Weis Markets
SVP-Marketing and Merchandising
Weis Markets
Tariffs:
Potentially it’s a big challenge, and Mexican produce imports are an example of how tariffs could impact our business and our customers. In 2024, Mexico imported $12 billion in produce to the U.S., particularly household staples like tomatoes, bell peppers and avocadoes. Tariffs on these products could increase the cost of goods, which would eventually impact customers. After two years of inflation, many customers have difficulties absorbing these increases.
At Weis Markets, we believe it is our job and that of our suppliers to push back and advocate for our customers, explaining that tariffs on imported food products have real consequences for our customers.
Perception of food prices:
Our industry needs to look at food prices from the customer’s perspective. While inflation moderated in 2024, it had a significant impact throughout the previous two years. Customers are still adapting to this new reality, which impacts unit sales. But it’s clear many of them continue to struggle with higher costs for household necessities.
Over the past year, Weis Markets has driven its value message through our Low, Low Price program, which offers strong everyday price points on more than 10,000 high demand items. We’ve also ramped up our efforts to reward customers who regularly shop our stores with year-round Weis Rewards program. Prior
Perception of food prices:
In recent years, retail in general has seen a significant increase in organized retail crime (ORC) ring theft – so it remains a challenge. To address this, Weis Markets increased our investment in shrink reduction technology and other resources. Our goal is to strike the right balance: We want to discourage shoplifting without inconveniencing the overwhelming number of honest customers who shop in our stores.
We are encouraged by recent government efforts to address this problem by increasing the penalties for ORC theft. Pennsylvania implemented a new retail theft law in 2024 and we’re already seeing the benefit. We’re hopeful other states do this as well.
It comes down to a combined effort involving people, technology and partnerships with law enforcement.
Ryan Redner
President and CEO
Redner’s Markets
President and CEO
Redner’s Markets
Tariffs:
They will most certainly create more strain on the consumer and affect their spending. Any time we see governmental addition to the cost of goods the consumer will bear the brunt of the impact as they all get passed along. We need to be sharp with the continual development and promotion of our private label brands, which often have lower production costs and can be sourced locally.
To lessen the shock on the consumer, we would want to gradually pass on a portion of increased costs to consumers while maintaining competitive pricing for key products all the while using promotions, loyalty programs, or discounts on high-demand goods to retain customer loyalty. Our team will be proactively planning for potential tariffs so we can navigate the markets, maintain operational stability, and adapt to changing consumer dynamics to retain customer loyalty.
Perception of food prices:
The perception is reality unfortunately and the costs of goods are higher now than five years ago while the national media has highlighted this inflation and how it has dragged down our consumer economy. Americans are up to their eyeballs in the cost of goods and are having to balance and budget to keep their households solvent. Retailers can only work to strengthen their relationships with consumers through one-to-one marketing, personalization and doing everything they can to give the guest the best price and value every day.
Perception of food prices:
Shoplifting has already been a thorn in one’s side and the bad actors continue to test out new ways to cause loss. Our team has been utilizing more technology and software combined with human detective skills to catch bad actors. With the proliferation of artificial technology (intelligence and analysis) we’ve been able to prevent some significant theft, as well as use the predictive tool to be waiting for actors as they commit the crime.
John Ruane
President
The Giant Company
President
The Giant Company
Tariffs:
Ahold Delhaize USA is closely monitoring the situation for any potential impacts to our business. At this time, we expect it to be minimal given the majority of our products are sourced in the U.S. We will continue to work with industry partners, like the Food Marketing Institute, on this matter.
Perception of food prices:
Perception can be a powerful thing; and with food being one of the things we all buy more often than other items, we understand the perception that may exist.
With respect to The Giant Company, price is top of mind for our customers, and us, too. We know that customers are counting on us to provide the quality products they’ve come to expect from us at affordable prices. From our circular to our app to free grocery pick up and earning free gas, we offer extensive personalized savings each week. We work closely with our supplier partners to keep prices as low as possible. Plus, with our low everyday prices, Bonus Buy Savings and additional ways to save like through our Choice Rewards program, we’re proud that our customers can get groceries and gas at affordable prices.
Shopping our selection of private brand products is another great way for our customers to save. We continue to look at opportunities to add to our assortment of private brands based on both trends and customer feedback. Customers recognize the quality and value of our private brand products, so we continue to innovate and offer items to meet both their grocery needs and become favorites, too.
Shoplifting:
Asset protection is crucial to our business for loss prevention, but more importantly, safety. At The Giant Company, we’re committed to creating a safe environment for our team members and customers, and as such, we have implemented a variety of technologies and measures to help us do just that. As a matter of policy, we don’t discuss specific measures.
