Wisconsin Grocers Association President Predicts Continued High Grocery Prices, Automation in 2024
Inflation, Higher Wages, and Workforce Shortages to Keep Prices Elevated
Brandon Scholz, President and CEO of the Wisconsin Grocers Association (WGA), has projected that grocery prices will remain high in 2024, with self-checkout lanes and robots becoming more prevalent in stores. This outlook was shared in a message he provided to the Wisconsin Bankers Association’s Wisconsin Economic Report.
Scholz emphasized that inflation rates are still exerting significant pressure on food and grocery prices, even as the overall inflation rate has moderated to around 3%. He cautioned that grocery prices are unlikely to decrease anytime soon due to a combination of factors, including higher wages, workforce shortages, and rising energy costs.
The retail industry, including grocery stores, has not yet recovered its workforce levels to pre-pandemic levels, Scholz noted. This has resulted in operational inefficiencies and contributed to the need for higher wages and benefits to attract and retain employees. These increased costs have been passed on to consumers in the form of higher prices.
Moreover, Scholz highlighted that consumers have adapted their shopping habits in response to the elevated prices. In 2024, shoppers are expected to continue purchasing in bulk and making price-conscious decisions.
Automation and Self-Checkout to Expand
The reduced workforce in grocery stores is also driving the adoption of automation and self-checkout lanes. Scholz anticipates that more checkout lanes will be converted to self-checkout, and the use of robots in aisles and other store areas could become the new norm.
These technological advancements are seen as a way to offset the labor shortage and improve operational efficiency. However, Scholz acknowledged that the transition to automation may bring its own set of challenges, such as the need for training and the potential impact on customer service.
Implications for Consumers and the Grocery Industry
Scholz’s predictions have implications for both consumers and the grocery industry. Consumers will likely continue to face higher grocery prices in 2024, and they may need to adjust their shopping habits accordingly. The increased use of self-checkout and automation could also impact the customer experience and the role of grocery store employees.
For the grocery industry, the focus on automation and technology adoption will require investment and adaptation. Grocers will need to balance the need for efficiency with the importance of customer service and the potential impact on employees.
Conclusion
As we navigate the complexities of the post-pandemic economy, it is clear that the grocery industry is facing significant challenges. Continued high grocery prices, workforce shortages, and the adoption of automation are among the factors that will shape the industry in 2024. Consumers and grocers alike must adapt to these changes while seeking innovative solutions to ensure a sustainable and thriving grocery sector.