Image Courtesy of Stop & Shop
Stop & Shop Under Fire After a Report Reveals ‘Inner City Price Gouging’ at Select Stores
May 15, 2025
Massachusetts lawmakers are taking the popular grocer, Stop & Shop, to legal task after an investigation discovered that it was engaging in what they call “inner city price gouging.” The lawmakers, including Sen. Elizabeth Warren and Rep. Ayanna Pressley, are demanding that executives show them accountability when it comes to lowering grocery prices for the economically disadvantaged. Let’s look at the details of this latest development.
Stop & Shop Allegedly Began Engaging in These Practices in 2024
According to a letter written on May 1 from Warren, Pressley, Sen. Ed Markey, and Rep. Jim McGovern, Stop & Shop CEO Frans Muller first came under fire back in September 2024, following “reports that the grocery chain was charging higher prices at an urban location in
Boston, Massachusetts, than at a suburban store location. According to a report produced by a group of Boston youth volunteers at the Hyde Square Task Force in June 2023, which compared the prices of 17 identical, staple food items at two store locations, ‘Stop & Shop [was] charging 18% more for groceries in a largely minority and working-class area of Boston’s Jamaica Plain neighborhood, compared to the Stop & Shop in Dedham, a more affluent suburb.’”
In a second study conducted the following fall, the Hyde Square Task Force examined prices at Grove Hall, South Bay, and Mission Hill, among other Boston Stop & Shop locations, and discovered price disparities similar to those in Dedham, according to Boston.com.
To find out if costs had changed, the Hyde Square Task Force visited the Stop & Shop shops it visited during its initial research again this month.
The April 2025 study shows that while cutting grocery costs in the Jamaica Plain site, Stop & Shop is “still charging higher prices at other inner Boston locations, suggesting that Stop & Shop continues to profit at the expense of lower-income communities.”
What Are the Lawmakers Demanding?
According to the lawmakers’ letter, they want the popular grocer to charge the same prices for the same products in every store to “ensure that it is charging all Massachusetts families fair prices for the food they work hard to put on the table.”
For instance, Stouffer’s Swedish meatballs cost $4.99 in the city, which is $1 more than in Dedham. Hormel Black Label Bacon was $8.49 in Boston versus $7.99 in Dedham, and Freschetta Pepperoni Pizza cost $8.99 versus $6.99.
The lawmakers also want answers to pertinent questions, such as:
- Why does it seem that the retailer is raising the cost of goods in Massachusetts’s low-income neighborhoods?
- The retailer responded to the letter from September by lowering everyday prices in all of its stores over several years. Which stores were involved, and what’s the reasoning behind their participation?
- What effect did the retailer’s closing of seven stores in Massachusetts since last September have on price decisions, and why did those stores close?
Responding to the letter, Stop & Shop stated it “remains committed to lowering prices across all of our stores in Massachusetts — and that work, which is already underway, will continue throughout 2025.” The company also stated that it will keep funding initiatives such as the Food Pantry Program, which provides nutritious food to thousands of underprivileged students monthly, including those attending more than 20 Boston Public Schools.
The grocer, however, has not directly responded to the lawmakers’ letter, nor has it provided proof that it is no longer engaging in price gouging.
It is also unclear whether this alleged price gouging has continued in other inner cities and states. Stop & Shop has over 300 stores in New York, New England, and New Jersey, including 117 sites in Massachusetts.
Stop & Shop’s Response
In regard to the letter, the supermarket chain sent RetailWire a statement:
“Today, Stop & Shop responded to Senator Warren’s most recent request for an update on our work to lower prices. As we shared with the Senator, we remain committed to the multi-year strategy we announced in 2024 to lower everyday prices at our stores. We are proud that by year-end 2025, prices will be lowered at all Stop & Shop locations in Massachusetts,” the company began.
“We reiterated for Senator Warren that grocery retailers operate on razor-thin margins and that there are many factors that influence prices, including different operating costs from store to store, and broader issues, including supply chain disruptions and rising labor costs. Additionally, brick-and-mortar retailers are struggling with the continued impact of organized retail crime, and we need our legislators’ help to address this issue,” the statement continued. “Even amidst these economic challenges, Stop & Shop is continuing the work that’s already underway to improve the customer experience in our stores and to lower prices. And, we remain steadfast in the work we do to support the fight against hunger in our local communities.”
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