What does sticky at the top mean in the FTC's grocery margin analysis?

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Sticky at the top means profit margins rose during disruptions but wouldn't come down when costs normalized. The FTC found food retailers raised margins to record 7% (revenues outpaced costs) during pandemic supply chain issues, then maintained those elevated margins even as supply chains recovered and input costs fell. Standard economic theory predicts competitive markets force margins down when costs decline, but the FTC documented the opposite. Margins got stuck at their inflated pandemic levels. This indicates pricing power rather than competition. The FTC explained that larger retailers and wholesalers with considerable leverage over suppliers protected these elevated margins. They used initial cost pressures as cover to raise prices more than justified, creating windfall profits. When costs fell, they kept prices high instead of passing savings to consumers. This sticky-at-the-top pattern contradicts claims that inflation was purely cost-driven and reveals corporate exploitation of market power during crisis conditions.

What does sticky at the top mean in the FTC's grocery margin analysis?

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