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As prices rise, middle class families cut back on groceries

Sharrieff Wales, owner of Champs Variety, and Fresh, says grocery store owners are getting a bad rap (Photograph by Jessie Moniz Hardy)

The sales volume for food stores declined 6.3 per cent in November, according to newly released Retail Sales Index figures.

That followed a 9.1 per cent drop the previous month, and a 10.2 per cent drop in September.

Sales volumes are calculated by subtracting the increase in the cost of food — which has gone up by 10.4 per cent since last year — from the total value of sales.

Lindo’s manager Zach Moniz said changing middle class spending habits are responsible for the trend.

“The lower sales volumes are driven by the middle class contracting what they spend,” he said. “The less fortunate only ever purchase what they can afford.”

He said as things become more expensive, people are becoming more frugal, buying less expensive cuts of meat, and budgeting more.

Accountant VerDee Brown is one of those changing her purchasing habits.

Gone are the days when she would let a head of lettuce go bad in her fridge. Now she has a new rule.

“We eat what’s in the fridge before we buy more,” she said.

She is constantly surprised by changing grocery prices.

“I just noticed the Romaine lettuce my husband brought home is $7, not the $4 that I’m used to,” she said. “Cheese is another item I am shocked about.”

Ms Brown runs a Facebook group called Frugal Living, Mindful Spending Bermuda, providing support for people who want to lower their expenses.

She and her family have streamlined the grocery buying process by buying food for fewer days at a time, and shopping on discount days. She has reduced her family’s monthly grocery bill from $1,500 to $1,000.

“I am not cooking as much,” she said. “And when I do cook I am cooking smaller portions.”

One person in real estate, who did not want to be named, said: “I am eating a lot more ramen noodles.”

Another woman in banking said she is trying to stay out of the grocery store as much as possible.

“When you go to the grocery store you end up buying things you do not need,” she said.

The woman, who lives with a partner and two children, subscribes to a farm-to-table programme that costs her about $90 a week. She bulk buys snacks for her children, and subscribes to a discount food box programme at her church.

When she does go to the store, she goes on discount days. She also tries to utilise pharmacy sale days to help her to buy things such as cough medicine and pain relievers.

Allan Hill believes the Government should step in to control rising food prices.

“I believe they can and should,” Mr Hill said. “It seems like every week the same product goes up five cents here and ten cents there.”

He works at the front counter in a store selling automotive parts.

“I no longer can afford to eat like I used to,” Mr Hill said. “I used to eat fresh fish, steak, lamb. Now I eat mostly chicken. A whole chicken that costs approximately $20 can feed the wife and I dinner twice. I can also use it to make three sandwiches to take to work. Then I make stock to make soup later.”

He also tries to buy cheaper cuts of meat such as chuck roast to make stews and beef pies.

Sharrieff Wales, owner of Champs Variety convenience stores as well as the discount store Fresh, said grocery store owners are getting a bad rap.

“Shipping has gone up and the pandemic did not help,” he said. “If you were bringing in a container from China, before the pandemic it was $9,000. During the pandemic it tripled to $27,000.”

He knew of at least four businesses that failed owing to shipping price increases.

“To stay in business, you have to adjust,” he said. “If you constantly absorb those costs you will not make any money, pay your staff or keep your lights on.”

He said in the winter time alone, the electricity bill for one of his stores can be anywhere from $3,500 to $4,000 a month.

“The cost of doing business is insane,” he said.

But he is trying to help his customers, by offering 10 per cent off essential grocery items, at Champs Variety, from now until the end of March, not including items such as cigarettes and alcohol.

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Published March 01, 2023 at 2:38 pm (Updated March 01, 2023 at 7:22 pm)

As prices rise, middle class families cut back on groceries

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