Grocery Retailers Are About To Suffer The Consequences Of Degenerative Practices

The Future of Business is Regenerative.

However, most companies seem to be slow to catch on to this Reality, as we continue to see Degenerative Practices.

These Degenerative Practices we have seen in the Workplace are catching up with Businesses.

The largest problem we are seeing is Burnout, which Impacts 80% of Employees.

Companies are failing to create Regenerative Teams, and Burnout is the proof.

But to Design a Regenerative Legacy is about "more" than your Products and Employees.

To Truly be Regenerative, you must also take into account your Suppliers and Customers.

All Flourishing Is Mutual.

If your Customers are Struggling, and your Suppliers, and your Employees, then You are not Flourishing.

We are seeing what the Consequences of this are with Grocery Retailers.

In particular, I have read of Three businesses, that have been Named, for their Degenerative Practices toward Customers and Suppliers in the Grocery Retail Industry.

• Amazon
• Walmart
• Kroger

So what exactly has happened?

What makes the Practices Degenerative?

Are there further signs of Problems?

What Happened?

You could call it the Worst Period of Time for most Humans in recent memory.

The Pandemic.

People were dying, terrified for their lives.

Going anywhere was Tempting Fate toward our own Peril.

At the same time, there were Supply Chain Issues that were Negatively Impacting Customers everywhere.

Supposedly, due to Issues caused by the Pandemic, prices surged for Customers because of increased Costs to Businesses.

At least...That is the story that has been told.

However, not all Businesses faced Problems during this time.

In fact, some businesses came out Extremely well, "despite" the Chaos and Struggle that so many faced.

While many people were worried about whether they would be dying over the next few months, businesses like Amazon, Walmart, and Kroger reported some of their highest revenues over costs since 2015...

Significantly Higher Revenues than they had "Ever" had in the Grocery Retail Industry.

Further, as Costs have gone back down for Businesses since the Pandemic, the Costs for Customers have not.

Leading to even Higher Revenues "Earned" for these Companies.

What Makes It Degenerative?

There are a couple of factors here that we need to take into account.

Now, typically if Costs increase, it makes complete sense that Prices must also increase.

Businesses "do" need to make a Profit at the end of the day for them to continue to pay Employees and service Customers.

However, there is a difference in what has happened in this situation.

Costs did increase during this time, there's no question about that.

However, when it comes to these companies, their increases in Costs do "Not" match the increases in Revenue.

These companies made a great deal "More" Profit than they had "Ever" earned in the History of the Industry.

What this points to is that these companies used the "excuse" of increased Costs to push their Prices "Much" higher than was justified.

Who does that Benefit?

The Suppliers?

No, they did not see an influx of money during this time.

The Customers?

No, if anything their lives were made "Significantly" Worse due to the Extreme Price Jumps on Basic Necessities.

The Employees?

Ha, that's funny - Burnout has not gotten better, and neither have Wages for Employees.

Who "wins"?

Profit, and that is it.

But this is not Flourishing.

This Problem has been Exacerbated even more because Prices have Not decreased for Customers, but Costs have decreased for Businesses!

With that higher Profit, are the Suppliers or Employees winning now?

Again, still no!

This is what you would call "Predatory Business Practices".

While Customers were literally afraid for their Lives, these Businesses took Advantage of their Customers by being Deceptive about Costs and Unethically gaining the Highest Profits they have ever had.

While the world was burning, these companies were adding gasoline.

But there is more to the story!

See, companies like Amazon, Walmart, and Kroger pressured their Suppliers at the same time!

These companies threatened their Suppliers with Fines if the Suppliers didn't deliver their Scarce Inventory on time, and pushed for Preferential Treatment.

The problem with this?

It goes against the Robinson-Patman Act which is a Price Discrimination Law.

This law states that suppliers aren't allowed to offer preferential terms, such as lower prices or access to scarce inventory.

Essentially, these companies bullied their Suppliers through threats to break this Law.

These created even further problems for both Suppliers and Customers.

These types of practices damage the entire Ecosystem.

Now, it seems that the FTC is being called in to make these companies answer for the damages they have caused to Customers and Suppliers.

As I said, All Flourishing is Mutual.

Did these companies "win" for the Profit they Gained?

No.

This has just created even more Problems for them.

Further Problems?

However, this is just the Tip of the Iceberg when it comes to Degenerative Practices that Occur.

Other Companies and Industries have also been named as being currently investigated for their practices.

Coca-Cola Co. and PepsiCo Inc. are being Investigated for how they Price their Products.

The Pharmaceutical Industry is also being examined.

I recently wrote about how Bayer Pharmaceuticals' "New" DSO Leadership Model appears to be a Smoke and Mirrors Coverup for what is "Truly" Happening in the Company.

(I've been told, by an Insider at Bayer, that what they have observed aligns with my Insights).

With this, I have written about Amazon Multiple Times for their Degenerative Practices.

In one piece, I did a deep dive into how Amazon's Return-To-Office Mandates would Backfire due to Psychophysiology and the Toxic Environment that would Occur.

This led to another piece where we discovered how badly these "Mandates" Backfired, and how they further created a Perception of Incompetent Leadership as well as revealed High Levels of Active Disengagement at the company.

Plus, there is perhaps the funniest failure of Amazon in recent years with their Knock-Off WHOOP Device.

Amazon attempted to Steal Tech Knowledge through an "Offer" to buy WHOOP, only to come out with their "own" product soon after that, no joke, told women they, "sounded judgy" and made people ask, "Why does Amazon want naked pictures of me?"

All of these types of Degenerative Practices have a Cost, and at the end of the day, they will only create more Problems for Leaders.

If Leaders are going to Succeed, they need to Change how they are Conducting Business.

The System is collapsing under the weight and Failure of these Degenerative Practices.

But it doesn't have to be this way!

We just need Leaders to Design a Regenerative Legacy.