The Internet age, in which information wants to be free, soon will affect grocery shopping, says industry consultant John Hauptman of Willard Bishop. He puts price transparency at the top of three future trends for food retailers. It is inevitable, he said during a panel discussion at USDA’s Outlook Forum, that grocers will post more and more of their prices on the Internet, allowing customers to browse electronically for the best deals and for store managers to monitor a competitor’s prices.
In England, the three major chains post prices for every item they carry, said Hauptman. At one chain, customers are given a printed comparison of what they paid for their groceries versus a checkoff total for the same items at competing stores. They get a coupon, good for their next visit, if the other chains would have cost less. Hauptman says he expects similar approaches to appear in U.S. stores.
Also during the food-inflation session, USDA economist Annemarie Kuhns said low petroleum and energy prices “may have a mitigating effect on food price inflation,” forecast for 2.5 percent this year. The 20-year average is 2.6 percent. Kuhns said egg prices in California may rise because of requirements to allow more space per bird. But the egg supply in the rest of the country could expand if egg farmers decide against modifying their barns to meet the California rules. USDA forecasts a 3 percent increase in egg prices this year, down from the 8.4 percent increase of 2014.