Supermarket chain Stater Bros. has laid off 63 store clerks in February, citing ongoing inflation as the primary reason, according to a video on the Patch local news website.
The layoffs come amid broader challenges for grocery retailers, exacerbated by newly introduced tariffs this year.
“With the recent announcements of new tariffs and probably more tariffs to come, it’s quite likely that inflation is going to take off even above the 4.5% we’re seeing now,” said Peter Van Helden, CEO of Stater Bros.
In an effort to keep prices stable for customers despite rising costs, the company eliminated jobs to reduce operational expenses.
“I know it’s impactful to everybody when they hear the word layoff, especially because in this company. We’ve never done this before. We’ve never had a layoff,” Helden added.
He also pointed to growing competition from non-union supermarkets, which can offer lower prices due to lower wages and reduced employee benefits.
“They pay their teammates less, they pay less benefits, and they take that savings, and they plow it into pricing. The enemy for you, I think, is the non-union competition,” he said.
Moving forward, the grocery chain expects further job cuts as inflationary pressures persist and additional tariffs drive up costs.
Stater Bros. Markets was founded in 1936 and operates 169 stores in Southern California.
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