Buono: “It's really more about how they might reprogram inside the store to get more margin or efficiency.”
SAN DIEGO—Food-price decline means yet another squeeze on profit margins for grocers already facing price wars from increased competition and pressure for lower prices from discount grocers and new entrants, Anthony Buono, chairman of CBRE's global retail executive committee, tells GlobeSt.com. In a recent report from the firm, Buono said, “A steady decline in food prices has delivered a mixed bag for the economy, providing consumers with more disposable income but crimping the already-narrow profit margins of grocery operators. If these low prices persist, grocers will see margin pressure, but may adapt by focusing more on higher-margin prepared foods and refining their supply chains.”
We spoke exclusively with Buono about what a decline in food prices means for food-related retail space.
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Carrie Rossenfeld
Carrie Rossenfeld is a reporter for the San Diego and Orange County markets on GlobeSt.com and a contributor to Real Estate Forum. She was a trade-magazine and newsletter editor in New York City before moving to Southern California to become a freelance writer and editor for magazines, books and websites. Rossenfeld has written extensively on topics including commercial real estate, running a medical practice, intellectual-property licensing and giftware. She has edited books about profiting from real estate and has ghostwritten a book about starting a home-based business.
