A study found that some Stop & Shop locations in Massachusetts charged higher prices in areas with a lower median income and now state lawmakers are demanding answers about the company’s practices.
U.S. Sens. Elizabeth Warren and Ed Markey and Reps. Jim McGovern and Ayanna Pressley sent a four-page letter to Stop and Shop leaders after a group of teen volunteers from the Hyde Square Task Force found that there are price discrepancies at different store locations, raising concerns about price gouging. The study, the results of which were first published last year, found that the grocer was charging more in urban neighborhoods than their suburban counterparts. Read the full text of the letter below.
Stop and Shop could be “engaging in corporate profiteering schemes that squeeze residents and families in Massachusetts,” said Warren, who pressed for details on what is impacting the price differences and what the company is doing about it.
At some stores in Jamaica Plain, food prices were $1 more than a location in Dedham. For example, Hatfield thick cut hickory bacon was $12.79 in Jamaica Plain and 11.99 in Dedham. Similarly, Brigham’s ice cream was $5.99 in JP and $1 less in Dedham.
The price gouging is seemingly taking place at store locations in areas with lower typical household incomes, according to the study referenced in the letter.
For example, prices may be higher at a store in Jamaica Plain or Grove Hall, where the typical household income is $41,000. But prices for the same products are less expensive in Dedham, where the median income is about $119,000.
According to The Boston Globe, who visited several store locations to confirm these numbers, a spokesperson from Stop and Shop said pricing should be uniform at all locations, but did not address why the prices differ.
In their letter, lawmakers gave the company until October 14 to respond to six questions about how and why prices are not uniform and what the company is doing to change.
Stop & Shop confirmed Wednesday that they have received the letter and plan to respond. In a statement a company spokesperson wrote:
“Under no circumstances does Stop & Shop consider a store neighborhood’s socioeconomic makeup when setting prices. Stop & Shop, like many other retailers, has prices that may vary by store location to account for factors like whether a property is owned or leased, rent, labor costs, store size, and store offerings, among other things,” the statement reads.
The statement pointed out that its locations in Boston’s Hyde Park and Roslindale neighborhoods have similar pricing to the Dedham store.
Read the members of Congress’ full statement below: