Stew Leonard Jr., the CEO of a well-known grocery chain, responded to Vice President Kamala Harris’ claim that there is price-gouging in the industry.
In an interview on FOX Business’ “The Evening Edit” with Elizabeth MacDonald, Leonard Jr. stated, “I haven’t met anybody price gouging.”
The Real Reason Behind Price Increases
Leonard Jr. discussed the factors influencing the rise in food prices, attributing it to increased costs from farmers and ranchers.
He explained, “Our farmers and our ranchers have been reflecting their price increases that they’ve had, which has elevated food prices over the last two, three years now.”
Economic Pressures on Everyday Expenses
In the same conversation, Leonard Jr. talked about the general rise in living costs, linking it to food prices.
“We’re seeing increases, you know, like everybody who has a house or a condo or an apartment, you’re seeing costs go up on fuel and energy or gas used to be around 2 or 3 bucks a gallon, it’s a little higher than that now.”
Transparent Supplier Relationships
The CEO highlighted his transparent relationship with suppliers, indicating that price changes are a response to real economic conditions rather than manipulation.
“They’re not calling me up and trying to artificially increase their prices, they’re calling me because their prices are going up.”
Vice President Harris’ Stance on Price-Gouging
In response to growing concerns, Harris’ campaign released a statement outlining her plan to tackle price-gouging.
The document mentioned that her administration would work with Congress to “advance the first-ever federal ban on price gouging on food and groceries; set clear rules of the road to make clear that big corporations can’t unfairly exploit consumers to run up excessive profits on food and groceries.”
Reflecting on Pandemic Pricing
Leonard Jr. commented on the behavior of some companies during the COVID-19 pandemic, suggesting that only a minority exploited the situation.
“I’m sure there was a ‘small percentage’ of companies who saw a ‘little window during COVID.'”
Advocating for Regulatory Measures
The grocery chain CEO spoke favorably about the role of regulation in the industry, seeing it as beneficial for consumer protection.
He said, “Overall regulation for his business is ‘good’ to ‘protect the consumer.'”
Market-Driven Pricing Advocated by CEO
Leonard Jr. expressed his belief in letting market dynamics control pricing rather than heavy-handed regulation.
He clearly stated, “let the market handle pricing.”
The Impact of Price Increases on Sales
Drawing from his extensive experience in retail, Leonard Jr. noted a fundamental business observation about pricing strategies.
“One thing I’ve learned in my 50 years of retailing in our family business, if you raise prices, guess what happens to sales, they go down.”
Long-term Retail Insights
With a career spanning five decades in the retail industry, Leonard Jr. shared insights gained from his long-term involvement in his family’s business.
He emphasized the effects of price adjustments on sales and consumer behavior.
Clarifying Misconceptions on Price-Gouging
The CEO addressed common misconceptions about price-gouging in the retail industry.
He aimed to provide clarity on the reasons behind price adjustments and how they relate to broader economic factors.
Future Outlook in Retail Management
Leonard Jr. concluded his discussion by reflecting on the future of retail management and consumer protection.
He stressed the importance of understanding market forces and maintaining fair pricing practices to ensure sustainable business operations and consumer satisfaction.
