Lawmakers seek answers: Why is Stop & Shop still charging higher prices in Massachusetts low-income communities?

BOSTON (WWLP) - Massachusetts lawmakers are looking for an update from Stop & Shop's parent company on the progress of its promises to lower grocery prices for Massachusetts residents.

In September 2024, U.S. Senators Elizabeth Warren and Ed Markey, along with Representatives Jim McGovern and Ayanna Pressley, addressed a letter to CEO Frans Muller of Ahold Delhaize, the parent company of Stop & Shop, concerning higher prices in minority and working-class communities in Massachusetts. "These types of price discrepancies place significant burdens on already-struggling consumers."

A 2023 study by a group of Boston youth volunteers at the Hyde Square Task Force revealed that Stop & Shop was charging 18 percent more for groceries in a largely minority and working-class area of Boston's Jamaica Plain neighborhood, compared to the store location in Dedham, a more affluent suburb.

Lawmakers requested that Ahold Delhaize explain the reasons for the price difference and the pricing algorithms used by the company. They would also like to know if there are any steps taken to lower prices and improve consistency across all 124 Massachusetts locations. 

Stop & Shop responded in December, saying they “launched a multi-year strategy to invest in pricing and lower everyday prices across all our stores,” including in each store in western Massachusetts and “select locations in the Boston market,” including the Jamaica Plain location.

The study group returned to the Stop & Shop locations and determined that the prices had been lowered however, they are still charging higher prices at the other inner Boston locations.

Examples from Stop & Shop in Grove Hall, South Bay, and Mission Hill vs. Dedham included:

• Stouffer’s Swedish meatballs were $1 more
• Freschetta Pepperoni Pizza were $2 more
• One pound of Black Label Hormel Bacon was $0.50 more

“It’s good news that Stop & Shop lowered prices at its Jamaica Plain store after we pushed them for relief, but we’re still seeing higher prices for families at other inner-city locations. It’s no coincidence that working-class communities are getting stuck with sky-high prices,” said Senator Warren. “We’re keeping up the pressure to make sure Stop & Shop isn’t overcharging families for the food they work hard to put on the table.”

Massachusetts lawmakers are requesting that Stop & Shop answer the following questions by May 14th on its promise to lower prices in all locations:

1. Why does Stop & Shop still appear to be charging higher prices for groceries in low income communities in Massachusetts?
2. In response to our September 30, 2024 letter, Stop & Shop said that it had “launched a
   multi-year strategy to invest in pricing and lower everyday prices across all our stores,”
   including in each store in western Massachusetts and “select locations in the Boston
   market,” including the Jamaica Plain location.
   • Please provide a summary of how this project has worked so far.
   • How did Stop & Shop select the Massachusetts store locations would be included in this strategy? Please list all of the Massachusetts store locations that were selected to be included in the price reductions.
   • Specifically, which “select locations” in the Boston market were included in this strategy? Please list each store location.
   • Were the Grove Hall, South Bay, and Mission Hill locations included in this strategy? If not, why not?
3. Please provide, for the 18 items included in the Hyde Square Task Force’s study, the five
   highest and five lowest prices that they are currently being sold for in Massachusetts Stop
   & Shop locations and provide the locations of each group of five.
4. Since our September 30, 2024 letter, Stop & Shop appears to have closed seven store
   locations in Massachusetts. What impact, if any, has this had on Stop & Shop’s pricing
   decisions?
   • Why did Stop & Shop decide to close these stores?