A Vancouver grocer says he’s doing everything he can to hold the line on prices, but warns it may not last much longer, as rising fuel costs ripple through the supply chain.
Running East West Market is a family affair for David Lee Kwen. He works alongside his daughter stocking shelves and helping customers. He fears there are tough decisions ahead. “I worry that if this continues, I can’t take care of my family,” he said. Lee Kwen points to the war in Iran and the resulting surge in fuel prices as a major concern. He estimates his own costs have already increased by about five per cent. For now, he’s choosing not to pass those increases on to customers. “We want the customers to still shop here. Because if you put up your prices all the time, that’s not good,” he said. “They got to eat and they only have so much disposable income.” Lee Kwen says independent grocers can only absorb so much though. “If you can’t cover your overhead, you got to increase prices.” He acknowledged that this is something he could be forced to do in the near future.
Industry warns increases are coming
The Canadian Federation of Independent Grocers says stores like Lee Kwen’s are especially vulnerable. “They operate on an overall margin of about two per cent. That’s very tight,” said Gary Sands, the organization’s senior vice-president. “If you don’t pass those increases on to consumers, you’re going to be an out-of-business grocer, not an independent grocer.”
Trucking costs surge
A significant portion of that pressure is coming from the transportation sector, where diesel prices have risen sharply in recent weeks… Source: ctvnews.ca/business
