Posted on 08/24/2021 1:43:04 PM PDT by blam
The prices of a lot of things are up these days, which fits the common definition of “inflation.”
Meanwhile, an increasing number of products are appearing at the same price but in smaller packages.This is inflation’s slippery first cousin “shrinkflation.” Here’s a sampling from a recent study:
• Bounty paper towels: The triple back has shrunk from 165 sheets to just 147.
• Costco’s toilet paper: A large pack was 425 sheets last year, but now is just 380.
• Dial Body Wash: Reduced from 21 ounces to 16 ounces, a 25 percent reduction.
• Ziploc freezer bags: 54 bags last year, but just 50 bags this year.
• Quaker Instant Oatmeal: 10 packs last year, but just 8 this year for some varieties.
Empty Shelves
But what about when the thing you want just isn’t there? Where does the complete absence of something fit on the inflation spectrum? This question is no longer academic, as empty shelves appear in stores across the US. (One nearby example: The Sequim, Washington Costco is – shades of 2020 — currently out of toilet paper.)
From yesterday’s Wall Street Journal:
“ Why You Can’t Find Everything You Want at Grocery Stores
Labor shortages, raw materials’ scarcity make supermarket supplies unpredictable; some executives say problems are worse than spring 2020’s dearth.
Grocery-store chains are still battling supply challenges that some executives said are as bad as what they saw in spring 2020, when hoarding left holes in stocks of some staples.
Industry executives say new problems are arising weekly, driven by shortages of labor and raw materials. Groceries including frozen waffles and beverages remain scarce as some food companies anticipate disruptions lasting into 2022. A wider range of products is running short and logistical challenges are compounding for many retailers.
Donny Rouse, chief executive of Louisiana-based Rouses Markets, said he is struggling to fill shelves as his company runs low on everything from pet food to canned goods. The chain of more than 60 supermarkets is sometimes receiving as little as 40% of what it orders, prompting Mr. Rouse and his staff to try to secure products earlier and more often. Before the pandemic, Rouses received well over 90% of its orders.
“It is difficult for customers to get everything they want to get,” said Mr. Rouse, grandson of the chain’s founder.
Remind you of anything? Like maybe Venezuela’s ongoing hyperinflation, which looks like this:
As for whether empty shelves equal inflation, that’s complicated. For now let’s just say that 1) shortages are both a cause and an effect of rising inflation, and 2) it’s getting harder to view Third World financial crises as something that can’t happen here.
“Stock is fine on everything I need.”
Unless you are in prison and your needs are limited to a fresh toothbrush and underwear once every couple of months, stock is definitely spotty compared to the last few years.
Good post.
Interesting. I live in Florida and the last 10 days I’ve noticed a lot of empty shelves and/or low stock items at Publix.
All sorts of things are running short. I went to Sherwin Williams to buy a paint sample (about $6.00, but it’s a big sample) and they told me they stopped selling samples because there’s a paint shortage and they need to keep their big buyers supplied.
I don’t know if the problem is materials or shipping, but the point is that shortages are affecting everything.
I was in the food wholesale business for over 3 decades.
The story was that Walmart got the modern practice of shrinking started.
They went to Folgers coffee with a retail and wholesale price already decided. Walmart does not care if suppliers make any money or not.
Folgers could not make a profit selling Walmart a one pound can of coffee at the wholesale Walmart demanded.
Folgers returned with a 13 oz can. They called it a special wrap.
Soon other food stores wanted the 13oz. can because Walmarts coffee was so much cheaper.
To this day you had better look at price per ounce when shopping at Walmart.
Think of doing a bi-weekly post on what shortages may be developing.
Just bought a 6 month supply of freeze dried food, 12 buckets, 25 year shelf life. Will add it to the 6 month supply I bough a few years ago so I have a years worth for 2 people.
Hope I never need to use it. Hope it was a waste of money.
For at least the last 10-15 years some stores have been running the sneaky “mark up the bigger box” scam since they know most just assume the cost per unit is cheaper and grab it.
Don’t forget... all manner of sins shall be forgiven thee except the unpardonable sin... paying full retail or overpaying. Lol
Here in rural upstate NY (western Catksills/Delaware county and Mohawk valley) Wal Marts are starting to have empty shelves in many sections
Be careful following older recipes. You have to know how much used to be in packages.
A small can of tuna used to be 7 oz. Over time, it has decreased to 5 oz. Half of that is liquid so you’re left with 2.5 oz of meat. A recipe that called for 2 small cans would take 3 of today’s sized cans.
“They” say eggs aren’t getting smaller but they sure look like they’re a lot smaller. If they aren’t smaller, then why do boxed cake mixes that used to call for 2 eggs are now calling for 3-4 eggs? Sorry, I can’t see wasting four eggs in a boxed cake.
Here in Indiana, grocery stuff has price per unit on shelf tags, sometimes pretty small but usually readable.
And you’re right, sometimes a large box of cereal is more per ounce than a smaller one.
Thank you Kamala.
I have kids I swear each one of them uses a full roll every time they go
“ I go 2-3 times a month”
May I suggest adding some fiber to your diet?
I’ve noticed the downsizing of products lately.
Ping to post 20.
Well played.
That probably was planned. Changing can sizes requires a cost outlay in new stamping dies. Same for blow molded beverage bottles. The lead-time for new tooling is measured in months... several months.
The prices for Sherwin-William’s industrial paints has shot up big-time... can’t get it in the usual mix times, either.
Inflation is a black eye for the economy under the current conditions. As the availability of product continues to shrink, the overall budget for HR can’t continue without laying off workers and thus not getting what products they do get to the shelves wih the inconsistent arrival of stock.
If a store has two items that cost the same, as soon as they lose one of those items, they are no longer able to pay the power bill that part of those items covered. And as soon as they lose enough items, they can’t pay certain bills at all. But they still have requirements to the stockholders and the government for taxes along with the light bill and water/sewage/garbage. So as shrinkage continues, the business is trying to cut as much as they can and raise the prices of product or service to cover the minimums. But that has a long term effect as if enough people get laid off to try to balance the minimum, there won’t be able to pay for applied sales products and the customer income slows again. It’s a big circle.
wy69
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