Albertsons Tells Suppliers To Eat The Cost Of Tariffs

Supermarket News reports:

Albertsons is taking a hard-line approach with suppliers regarding cost increases tied to tariffs. Omer Gajial, the grocer’s head of merchandising, told suppliers via letter that Albertsons will not accept cost increases. Those wishing to propose a price change must follow a multi-step process, Forbes reported.

The letter, sent in March, stated that suppliers may not include tariff-related costs in invoices without prior authorization from Albertsons. Any invoices that contain unauthorized charges are subject to dispute and could face payment delays.

During its fourth-quarter earnings call last week, Albertsons said it has deployed a task force to monitor market volatility, particularly related to tariffs on imports imposed by the Trump administration.

Read the full article. The Fortune report is behind a paywall.

This implies either of 2 things: Albertsons has crazy monopsony power over its suppliers or the suppliers until now have had monopoly power over the supply chains & have room to eat the tariffs. My $$ is on the former. It’s anti-competitive either way. https://t.co/wpOsUQH1UA

— Sam Dodini (@microsamonomics) April 26, 2025

Albertsons sent a letter to all of its suppliers saying it won’t accept price increases flowing from tariff-related costs. Which means independent grocers are likely to absorb those cost increases instead.

For Albertsons, tariffs are an opportunity to devastate the competition. pic.twitter.com/fG2FsgSbdb

— Lee Hepner (@LeeHepner) April 9, 2025