retail news in context, analysis with attitude

The Wall Street Journal reports that “an inflationary tide is beginning to ripple through America's supermarkets and restaurants, threatening to end the tamest year of food pricing in nearly two decades.

“Prices of staples including milk, beef, coffee, cocoa and sugar have risen sharply in recent months. And food makers and retailers including McDonald's Corp., Kellogg Co. and Kroger Co. have begun to signal that they'll try to make consumers shoulder more of the higher costs for ingredients.”

The problem is that nobody quite knows what the traffic will bear, and there remains considerable concern that continuing recessionary pressures will lead to customer defections because of raised prices.
KC's View:
The bigger problem will be endured by companies that have made price the only thing that matters in their businesses. if you had something else going for you - some other differential advantage that set you apart from the competition -n then I think the impact will be less.