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Several big-name retailers like Walmart, Chipotle, and others are facing increased scrutiny as consumers and critics question their pricing strategies. Stronger inflation and disrupted supply chains due to the COVID-19 pandemic are leading to increased costs for many businesses. These businesses, in turn, are passing on their increased costs to consumers in the form of higher prices.
Higher prices are especially noticeable in the grocery sector. Walmart, one of the most prominent grocers in the U.S., is dealing with rising food prices. This increase is affecting the supermarket’s customer base of low and middle-income shoppers disproportionately.
Similarly, Chipotle has recently increased its menu prices by approximately 4% across the United States to help cover the cost of raising its workers’ wages. The popular Mexican chain had announced in May it would raise employee wages to an average of $15 per hour.
These increases in business costs and, subsequently, consumer prices, are leading to criticism and debate. Some commentators emphasize the need for businesses to absorb cost increases to protect consumers, while others argue that businesses must pass on these costs to remain profitable.
