Area grocery stores face price pressure

Gas prices aren't the only prices going up.

Food prices rose 3.9 percent in April compared with the same month in 2006 across the United States, according to the U.S. Bureau of Labor Statistics.

The Bureau of Labor Statistics tracks the average cost of groceries in cities across the nation. According to the Web site www.bls.gov, white bread cost $1.20 per pound in April, compared to $1.07 per pound in April 2006. Ground beef has gone from $2.60 a pound to $2.68 during the same period. Whole chicken went from $1.05 to $1.12 per pound, and ground roast coffee has gone from $3.29 to $3.44 per pound.

Lori Willis, director of communications for Schnucks, said the grocery chain's management is working hard to control prices in its stores, which are in seven states.

"We've noticed no single increase," said Willis, adding that the store has many suppliers when it comes to produce. "I really don't think you could apply a general increase across the board for us."

Jim Maevers, co-owner of Save-A-Lot in Cape Girardeau and Jackson, said produce is a difficult business to be in right now.

"We have the cost of goods, utilities, labor, insurance and all other costs associated with operating a store going up," he said. "But competition is so fierce, there's just not a whole lot of room to raise prices. We try to keep our prices low, but we're eating that cost internally."

Mike Recker, the store manager at Food Giant in Cape Girardeau, said the store simply won't make the margin it did before if prices go up.

"It hasn't hit us yet," Recker said. "There's probably going to be more increases down the line is what we're all hearing."

While there may not be room to raise prices, there is room to expand customer service.

Recker said in order to stay competitive against big grocery chains, his employees offer little extras such as carrying groceries out to cars.

In Schnucks' newer locations, more service areas are being incorporated into the layout, like a coffee bar, a salad bar and a deli.

"We try to come up with new ways to connect with customers so their shopping experience is less of a chore and more of an outing," Willis said.

However, customer service isn't the only factor people consider.

Charlene Piper of Cape Girardeau said she shops at Schnucks because it's closer to her house and because of the consistent sales on meat and soda.

While she prefers the customer service at Wal-Mart -- "They're just nice," she said -- she avoids Wal-Mart for grocery shopping.

"There's so much to buy there, you could go broke," she said. "You go grocery shopping and next thing you know you're in the clothes section and wind up spending $300 instead of $100."

tkrakowiak@semssiourian.com

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