John Grap/The Enquirer

(left) Sherri Ashley and her granddaughter, Amari, went shopping Thursday afternoon at the Bailey Park Thriftway.

Hardial Singh, owner of the Wattles Park Grocery, talks about how the changing economy has affected shoppers - and small businesses, too. "The smaller stores are getting pinched out," Singh said. "That´s always been the case, but now because of the economy, everybody´s sitting on their pennies."
 


Higher grocery costs drive more to food banks


 

The $400 to $500 Sherri Ashley spends monthly on groceries is getting her a lot less these days, she said.

Ashley, 50, of Battle Creek is one of millions of Americans who've changed their eating habits in the face of the biggest food inflation in 20 years.

"I used to spend that and fill the freezer, and we'd have some left over," Ashley said as she shopped Thursday at Bailey Park Thriftway with her granddaughter, Amari Ashley, 5. "Now there's never any leftovers, if we make it through the month."

Staples such as bread, milk, lettuce and eggs cost as much as 50 percent more now than two years ago, driven up by record-high energy, corn and wheat prices. Overall, the costs for groceries rose 5 percent in 2007, and the Arlington, Va.-based Food Marketing Institute said people across the country are bargain-shopping more and dining out less.

The cost of a loaf of bread has increased 32 percent since January 2005, to its current $1.32 average. Eggs have increased almost 50 percent in the past year to an average $2.17.

A family of four, shopping moderately, spends an average $904 per month on groceries, according to the U.S. Department of Agriculture. That's $80 more than in 2006.

More and more people are seeking help at food banks to fill out their thinning cupboards. America's Harvest, which distributes to 200 food banks around the country, said its client load increased 20 percent at the end of 2007.

Industry analysts say high prices are here to stay.

"I'm definitely buying cheaper," Ashley said. "Buying hamburger instead of ground beef, not really getting steak. I'm buying more meat and fresh vegetables because it's easier to make those stretch. And of course I can't afford name brands.

"I used to go to a lot of different stores to try to shop sales and things like that," she added. "But with the cost of gas, that gets hard, too."

Battle Creek's Keona Hoover, 26, said she's spending about $170 per grocery trip now, when she used to drop $70 or $80 at the register. With two kids at home, she said she doesn't think she can buy any less food, but has a hard time with the rising costs.

"My kids' appetites is big, after school," Hoover said. "It's getting tough."

Hoover said she tries to find bargains, but even discount grocery stores such as Save-A-Lot are raising prices.

"The stores where food's priced low doesn't mean anymore you're going to spend less there," Hoover said. "You just have to budget."

As consumers seek bargains, they've turned away from local grocers and turning to super centers, such as Meijer and Wal-Mart. The smaller local grocers already struggle to compete.

Hardial Singh, owner of Wattles Park Grocery in Emmett Township, said he's watched his business steadily decline the past three years.

"The smaller stores are getting pinched out," Singh said. "That's always been the case, but now because of the economy, everybody's sitting on their pennies."

Customers have always favored his store for small, last-minute items, Singh said, but lately, many have been avoiding spending those extra few dollars.

To help keep his costs competitive with the larger stores, Singh's gone from four employees down to two and puts in at least 10 hours a day, six days a week, himself. He makes a point of getting to know his customers because personal service is one of the only ways he can compete.

He named gas as the chief culprit behind the rising prices.

"Everything goes up with gas," he said. "In the last three years, prices have hiked up 20 percent. That's everything, from A to Z; it's not just one thing.

"People just have to cut down on the things they do."

The Associated Press contributed to this report. Justin A. Hinkley can be reached at 966-0698 or jhinkley@battlecr.gannett.com.