San Bernardino, CA – Stater Bros., a prominent Southern California grocery chain, has announced the layoff of 63 employees, citing persistent inflationary pressures, the potential impact of new tariffs, and intensifying competition from non-union retailers. This marks a significant move for the San Bernardino-based company, which has been a staple in the region since its founding in 1936, as it is the first time they have had to do lay offs.
The affected positions are those of convenience clerks across four locations: Grand Terrace, Ontario, Costa Mesa, and Orange.
Pete Van Helden, CEO and Chairman of the Board of Stater Bros., addressed the company’s decision in a recorded video, highlighting the unprecedented inflationary environment. “We have experienced severe inflation over the past four years, the likes of which I have never seen in my career,” Van Helden stated.
He further detailed the impact on consumers, noting that retail prices have surged by 30% compared to four years prior. "This has a significant impact on our customers. It means that groceries that could be purchased for $100 now require $130," he explained. This has led to noticeable shifts in consumer behavior, with customers reducing their purchase volumes and seeking more affordable options at non-union stores.
The announcement of new tariffs has also raised concerns within Stater Bros., particularly regarding the potential for further price increases. "We are very concerned" Van Helden said about the new tariffs.
In an effort to manage costs and maintain competitive pricing, Stater Bros. has made the difficult decision to reduce its workforce. “We are making difficult decisions to reduce our operating expenses to maintain prices for our customers” Van Helden stated.
Van Helden indicated that further reductions in the company’s workforce may be necessary. “I am confident that we will need to continue to reduce the number of jobs in this company going forward. This is the reality,” he stated.
The layoffs reflect the broader challenges facing the grocery industry, as retailers grapple with rising costs and evolving consumer preferences.
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