The Southern California grocery chain Stater Bros. is laying off 63 employees as a response to what the company says is inflation, tariffs and the inability to compete with nonunionized stores.
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The first store opened in Yucaipa in 1936, and this was the first time the San Bernardino-based company had issued layoffs.
Sixty-three courtesy clerks are losing their jobs at four stores in Grand Terrace, Ontario, Costa Mesa and Orange.
In a recorded video, CEO and Chairman of the Board, Pete Van Helden said the reason was inflation. "In the last four years, we've seen significant inflation, more than I've ever seen in my career."
He said retail prices are 30% higher now than they were four years ago. "That's a big impact to our customers. That means that it's now costing them $130 to buy the same groceries that they could buy for $100." Customers are buying less, and have turned to shop at lower-priced, nonunion stores according to Van Helden.
With the new tariffs announced, Van Helden said he is "very worried" about the effects, specifically the increase in prices.
In an effort to hold pricing, he said the company is making "tough decisions" and cutting operation costs by laying off employees.
"I'm pretty sure in the future, we will have to continue to reduce the number of jobs in this company; it's a fact," Van Helden said.
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