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Back Home for the Holidays .............................................................................................................................
The new partnership is moving along quite well. We are drilling ahead in two locations now. One in New Mexico and another in West Texas. Both exploratory wells look good and initial data and geology show that this will be quite a productive area for oil even though there's a lot of natty to be flared off (unfortunately a lost resource but sacrifices must be made).
Some other news is closer to home. I been home for a couple days and went shopping with the wife at Costco and Sam's Club. HOLY SHEET! I knew that inflation was roaring right along but damn! Not only that the shelves were spotty at best with some items not in stock or or only a handful on display. Could be the Christmas Rush but I doubt it. Reports I have read that the effects of the Supply Chain Crisis haven't been entirely resolved and the effects of the drought around the world has resulted in fewer and more costly goods. I did mention to the wife that it's a good thing that we are well prepped as it may be necessary very soon. I also hear that meat prices may at least double again in the early part of 2023 and some veggies, fruits and grains will spike early on as well. I will be in the field again this year so hopefully the wife won't drop the ball on the garden needs. Planning on more potatoes, garlic, cabbage (I do love me homemade sauerkraut), etc. More freeze-drying on tap as well. I suspect that 2023 will be one for the record books.
- BLACK BLADE
Some interesting videos:
Sam’s Club Reports Mass Shortages As Thousands Of Items Disappear From Stores ...........................................
Today, Americans are leaving stores with fewer items and larger grocery bills, and that’s a trend that is expected to continue in 2023. In fact, that’s one of the main complaints made by members of Walmart-owned Sam’s Club. New reports are exposing that Sam’s Club warehouses are starting to look alarmingly empty as many everyday products continue to vanish from the stores. A couple of weeks ago, the chain also announced that prices will be “readjusted” given that the entire industry is facing tougher conditions. As it turns out, the retailer’s supply chain problems are back, and according to executives, Sam’s Club may have to reduce its product assortment to deal with this crisis.
Sam’s Club has become the second-biggest retailer by sales and the biggest warehouse club operator in the U.S. With prices for basic food items going through the roof everywhere, more and more people have been going to the clubs to try to save money on bulk sizes of staples from pasta to cooking oil and rice. But while all of that new demand may seem good for business, it is also making warehouses look emptier, staple products are becoming harder to find and inflationary pressures are pushing Sam’s Club's famously low prices to levels they haven’t been in over 10 years.
Some viral videos at Sam’s Club warehouses show what customers are now witnessing every time they visit the store. One restaurant owner named Rebecca McBride noted that bulk retailers are the best choice when you’re making food in large quantities and need to buy vast amounts of “standard” ingredients like flour, sugar, butter, milk, heavy cream, and eggs. But when McBride went to her local Sam’s Club store to restock her pantry, she was shocked to see that these products have completely disappeared from the shelves. For McBride, the owner of a bakery in Texas, the sight of a store completely out of baking items was like a nightmare scenario.
Availability issues also made the company discontinue some consumer favorites, such as its store-brand Member’s Mark Organic Fruit Snacks. In another recent video, shoppers showed empty shelves in the produce aisle, with several greens and vegetables completely sold out. An analysis of customer complaints released by Retail Next, ranked some of the most cited product stockouts at Sam’s Club last month. 70% of surveyed consumers said stores were out of celery, grapes, lettuce, and chicken. Fruits were right behind it, with apples being the most mentioned of them. In fact, apple prices have been reportedly soaring at Sam’s Club stores, jumping from $7.49 in October to almost $10, or $9.89 this month.
A few weeks ago, Sam’s Club CEO announced that membership prices would go up for the first time in ten years. At the same time, its wide range of products that offered customers incredible variety is effectively shrinking, says Sam’s Club executive Clint Gill. “We still have too many items in our clubs, and we are working to downsize the assortment. We are not actively adding new items at this time,” Gill recently told suppliers at a recent WallStreet Speaker Series event. When companies that managed to keep inventories full and costs low even during the worst of the pandemic start to struggle with getting supplies and boosting profit margins, that’s when you know things are getting really bad really fast.
