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Gas prices drive grocery bills higher, says online grocer Boxed CEO


Online grocer Boxed CEO Chieh Huang said shoppers may have to get used to paying more to fill up the fridge and pantry — especially if gas prices stay elevated.

Huang said to CNBC’s, “TechCheckThe main reason for steeper prices in the company’s ecommerce business is the higher fuel costs. The bulk grocery products Boxed offers are delivered to both corporate and household addresses. Through a merger with SPAC, it became public in 2013.

“We don’t expect price abatement any time soon,” he stated. He added that the company uses its own software and a transport management system as well as multiple carriers to lower prices.

Groceries one of the major categories surging in priceInflation at its highest point since the 1980s. The Labor Department reports that food prices have risen 1% in March, and 8.8% the previous year. These food items are ground beef, chicken, seafood, fresh fruits, and rice.

According to the Labor Department in March, gasoline prices rose by 18.3%, making it more expensive to transport food throughout the country.

Those rising prices have inspired some retailers — including Boxed’s bulk-selling competitors like Walmart-owned Sam’s Club, BJ’s WholesaleAnd Costco — to emphasize cheaper gas prices and play up other gas perks.

Huang indicated that he expected to witness a demand shift in shoppers’ shopping behavior, and this could lead to them buying more bulk products for better prices.

Boxed began as a pantry staple and has since expanded to include fresh food. Huang stated that some of these items have faced the most severe price drops, like beef.

He stated that there are some things that can’t be done except to share the costs with customers.

Huang stated that Boxed has one bright spot: the return of employees to corporate offices.

According to Huang, 25% of all sales had been made by businesses before the epidemic. Huang explained that Boxed’s business-to business side is stronger, more successful, and more stable than Boxed’s consumer business.

We are looking forward to “Hey, what happens in the post-Covid universe as people return not just five days per week but also one, two, or three days per week to work? He stated that. It will make offices restock their pantry shelves.