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Stop & Shop Questioned on Pricing by Senator Elizabeth Warren

10/05/2024

Following an investigation by the Hyde Square Task Force in June 2023, a volunteer youth organization on pricing of food, Senator Elizabeth Warren (D-MA) has seized on the issue of disproportionate shelf pricing. She has addressed a letter to Frans Muller, CEO of holding company Ahold Delhaize requesting specific pricing and policy information relating to The Stop & Shop chain.

 

The Hyde Square Task Force demonstrated a noteworthy difference in prices on identical items purchased in Jamaica Plan, a working-class neighborhood store and the more affluent suburban Dedham location.  Senator Warren requested specific information on pricing algorithms, the used of neighborhood demographics or census tracked information, justification of costs and competitive factors.

 

In response, Stop & Shop denied setting prices based on socio-economic and neighborhood factors, noting the differences in rent, and operating costs that influence pricing.

 

The controversy comes at a difficult time for Stop & Shop that claims to have recently lowered prices on many items in stores including the approximately 125 locations in Massachusetts.

 

The issue of ‘price gouging’ including allegations of ‘surge pricing’ are now on the national pre-election agenda. Unfortunately high prices for eggs have dominated mainstream and social media reports despite more recent declines from unseasonal retail values.