It’s been more than 50 years since a grocery chain has seen its meat stock drop below market price.
And the trend is on the rise again.
We recently spoke to supermarket chain Smiths supermarkets about the latest trend in the meat supply, including what it means for the company’s future.
The trend is not just a matter of economics, according to the company.
“It’s a matter, it’s not just about price,” said Matt Smith, the president of Smiths, a supermarket chain with about 3,500 stores in the United States and Canada.
Smiths’ meat business has been hit hard by recent food stamp cuts.
Many supermarkets have been forced to lower their prices, and it has pushed some meat-loving shoppers away from traditional retailers, including Walmart, Costco, and Safeway.
While the trend has been taking place in the US, it has spread to Canada, according the company, which has seen the trend extend to grocery stores and restaurants as well.
The Smiths chain, which operates about 3.6 million stores in more than 40 countries, was hit hard last year by a food stamp cut.
Its meat stock fell to below market value by about $30 million last month, Smiths spokesman Matt Binder said in a statement.
It’s been a tough time for the business.
Last year, Smith’s saw its stock drop $40 million in one day.
It’s now down about $2 million a day, Binder added.
A drop in sales is hurting the company financially.
In November, the company announced it was eliminating nearly 1,100 jobs.
It plans to reduce its workforce by 1,400 in 2017.
For Smiths customers, the situation is not only concerning but also frustrating, according Dan Tingley, the CEO of the Canadian Federation of Independent Business, an organization that represents the business sector.
Tingley said the food stamp reduction has impacted the bottom line.
But he also said the company is not alone in the trend.
If a company can’t find ways to lower prices, it may find it harder to get customers, he said.
When the trend begins to affect the grocery store, it will be a very, very hard sell to consumers, Tingleys comments came during a discussion about the trend on Monday with analysts at Morgan Stanley.
This is a business that has to operate on margins, he added.