Challenges Ahead for US Grocery Industry as Food Inflation Impacts Seafood Sales; Walmart and Lidl Cutbacks Highlight Market Struggles

Ongoing Food Inflation in the US to Impact Seafood Sales at Grocery Stores; Walmart and Lidl Cutbacks Highlight Challenges for the Industry

The US grocery industry is expected to witness a decline in seafood sales due to the prevailing food inflation, causing consumers to opt for cheaper alternatives. Walmart’s cautious outlook on customers’ spending and Lidl’s corporate cutbacks also indicate a tough road ahead for the overall grocery sales. Despite reporting strong Q4 revenue and a surge of 8.3 percent in US comparable store sales, Walmart CEO Doug McMillon lowered the profit projection for the year, citing persistent food inflation in the industry. The company is taking measures to keep its private label prices low and is urging brand partners and suppliers to reduce their costs. Meanwhile, Lidl US announced its decision to eliminate several roles across the company to streamline operations, even as it expands along the East Coast.