Press Releases
Senate Hearing Highlights: Grocery Giants Grilled Over Price Gouging
WASHINGTON, DC — Following today’s Senate Banking Subcommittee on Economic Policy hearing, “Protecting Consumers’ Pocketbooks: Lowering Food Prices and Combating Corporate Price Gouging and Consolidation,” government watchdog Accountable.US released a new analysis detailing massive earnings from the country’s largest grocery chains and major food manufacturers amid price hikes. As major grocery chains needlessly force millions of American families to make difficult choices, the analysis underscores why Congress must act to rein in food industry profiteering if companies refuse to answer President Biden’s call to pass savings onto everyday families.
Big grocery chains enjoying higher profits clearly did not need to price-gouge families. They could pass profits onto consumers with more reasonable prices any time they want, but many would rather enrich a small group of investors. It’s time the grocery giants answer President Biden’s call to get their greed in check -- following the lead of companies like Target that voluntarily lowered prices on thousands of goods ahead of Memorial Day weekend. Major grocers should admit they raised prices just because they could – and that they could just as easily make food and necessities more affordable.”
Accountable.US’ Liz Zelnick
Today’s hearing comes on the heels of a major announcement that Target Corporation cut prices on around 5,000 popular items this week, with plans to lower prices on thousands more items over the summer.
HEARING HIGHLIGHTS
- Subcommittee Chair @SenWarren with the FACTS: Rising grocery prices aren’t just the market at work—they’re fueled by unchecked corporate greed! Nearly 70% of Americans back stronger regulation. It’s time for Congress to step up & support @POTUS‘ efforts to tackle this greed and bring down prices. [FULL CLIP]
- Subcommittee Chair @SenWarren exposes how corporations exploit inflation: General Mills & Hershey’s CEOs openly admit to using it as a shield to hike prices—boasting increased profits during earnings calls. It’s not just passing costs; it’s maximizing profits under the guise of inflation. [FULL CLIP]
- .@SenatorWarnock on the dual hardships faced by 1M Georgians: rising grocery inflation & limited access to stores, particularly in rural areas. This issue disproportionately hits people of color (2.2x more likely to face hunger). More competition could ease this disparity. [FULL CLIP]
- WATCH: A breakdown of illicit activities in Big Ag: From illegal price fixing with DOJ cases pending to legal, yet predatory price gouging. Such practices thrive in concentrated markets lacking competition, underscoring the urgent need for robust price gouging prevention laws. [FULL CLIP]
- Enough is enough! While corporations shamelessly gouge prices and profit off our pockets, it’s time Congress took real action. Let’s get behind the Price Gouging and Shrinkflation Prevention Acts. We need laws that stop these outrageous price hikes and sneaky cutbacks. [FULL CLIP]
GROCERY PROFITEERING
Top grocery store chains like Kroger, Walmart, Target, and Costco Wholesale have reported consistently high profits and net incomes year over year:
- As previously reported by Accountable.US, Kroger reported $736 million in Q4 2023 profits, as the Federal Trade Commission (FTC) filed a lawsuit blocking a proposed merger with competitor Albertsons.
- During its Q1 FY 2025, ending April 30, 2024, Walmart saw its “consolidated net income” climb to over $5.1 billion, a 205.1% increase YoY, as the grocery giant spent $1.6 billion on cash dividends and $1.1 billion on stock buybacks.
- During its Q2 2024, Costco Wholesale reported an almost 19% increase in net income YoY, from $1.4 billion to more than $1.7 billion, as it spent $8 billion on cash dividends and $322 million on stock buybacks during the first half of its FY 2024.
- In Q4 2023, Target saw its net earnings top $1.3 billion, a 57.8% increase YoY, as it spent $508 million on cash dividends.
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