Attention shoppers! How grocery stores get you
By Gordon Powers, Sympatico / MSN Finance
People are eating out less, restaurants are hurting, and consumers, rather than frequenting multiple outlets, seem to be going to one-stop places like a Loblaws to buy food. And their bills are climbing as a result, MSN readers tell us.
All of which suggests it’s time for a review of grocery marketing strategies.
Grocery stores know just what to do to make you buy more. And, as far as they’re concerned, they only have two types of customers: Those who don't realize how much money can be saved or those who think they’re saving money already. Either one will do.
Supermarket planners have long known that the more time you spend in a store, the more you'll buy. In fact, studies suggest that once you hit the half hour mark each additional in-store minute adds as much a dollar to your bill.
That’s why you’re seeing more sampling centres, coffee bars, cooking displays, pre-cut fruit, and in-store bakeries – all designed to get your stomach to rule your wallet and to keep you hanging around.
Have you noticed that your favourite brands seem to be shrinking? Well, you’re on to something. Roughly one-third of items at the grocery store have lost content since 2007, according to the Nielsen Co.
Over at Mouse Print, they've been tracking this downsizing of products on supermarket shelves. And the list is growing. Pretty soon, you’ll open a carton of a dozen eggs and see there are only 11.
To be sure you're getting the best value for your money in an era of shrinkage, check the unit price: it's the number on the shelf tag that says how much the item costs per ounce or pound. That way, it's a no-brainer to calculate whether the larger or smaller item is the better buy.
As long as you're already at the store, might as well pick up laundry detergent, pet food and paper products as well, right? Probably not. Even though there’s more competition than there once was, supermarkets still tend to price non-food household items higher than discount or specialty stores, knowing that shoppers will buy them anyway out of convenience.
Another danger point in the store is a sale that's not really a sale, warns the Greenest Dollar blog. For example, stores will create visual cues by using bargain bins, hanging promotional signs, or filling up endcaps at the corners of each aisle with items that are actually not discounted at all.
How are you doing when it comes to groceries?
Posted by: Jennifer | May 11, 2021 2:42:32 PM
I believe this. i go shopping almost every week, one week for just veggies and the second week for everything else. I have seen the cost of just about everything go up and the portion sizes getting smaller. you know those big blocks of cheese?? they used to be 600 grams, now they are only 540g. and it's the same damned price. next thing we know, its not going to be 4L milk, it will be 3.5L. and then it will go up in price.
Posted by: Jerrod Alvarez | May 11, 2021 2:44:22 PM
Don"t bend overin the supermarket, or you will get the big cucumber.
Posted by: jeanne | May 11, 2021 3:30:45 PM
It is not surprising that the grocery stores are revising their strategies to maximize profits.
I shop at 3-4 stores. Each week I scan the flyers, and whatever items I NEED that are on sale those are the items I purchase this week. I find by doing this I always have a variety each week.
I never go to the store without a list and never purchase items that are not on the list.
I never purchase non-food items at a grocery store. I found the absolute best company who market their products direct to the consumer.
I'm happy to share the information if anyone wishes to contact me.
Posted by: cynicalso | May 11, 2021 3:32:02 PM
Have a look, they're not the only ones practicing this type of slight of hand, its all around us. Why is it that the stuff you want is always at the back of the store? Why is it that when you go to the electronics store for that sale priced item they've just sold out? Why is it that your cable and satellite systems keeps shrinking the actual programming time and con-mercials keep increasing? Answer- Once they got you there- there's more of a chance of selling you more or something pricier! I think its high time we legislate some honesty back into business or make them pay dearly for dishonesty.We're being manipulated and plucked every time we turn around. In this province they're doing away with "small claims court". I'm sure the cheats, the shams and the frauds are smiling from ear to ear. Here's a classic example- province run liquor cannot due to legislation increase price unilaterally- so what do they do? SIMPLE- Ask the producer to increase their supplied price so they can make more margin on the increased price?!? Tell me that's not rampant dishonesty?!? The civil servant(s) that came up with that one should lose their job and their pension. However more than likely they'll get a raise.
Posted by: Gladys MacDonald | May 11, 2021 3:39:44 PM
Cheese purchase this week [the one that was 600g] is now only 500g....last one I purchased was 520g.
Posted by: Geoff Peterson | May 11, 2021 5:19:31 PM
We as consumers get ripped off by grocery manufacturers, stores etc, because we are too placid in accepting the marketing practices of these large multinational corporations such as Lever Bros, Kraft Foods, General Mills, and the list goes on. If we were to complain on mass , we would not see the downsizing that is going on in the industry, today I bought a block of Kraft Cracker Barrel cheddar and the package size is now 500 gram, just a little over a pound (454grams), history has shown in every recession, these multinationals hike prices, knowing well that we will pay the price, and when costs decrease as in the price of wheat, we have been conditioned to accept the higher price, so hence we will not see a price decrease, and this goes for many items in the market today. Sobeys, Loblaws, Metro(A&P) are all enjoying increased profits because of price increases, and product downsizing, and not because of improved operating efficienies.
Write the CEO's of these companies and see the canned PR response you will get.
The same also applies to the oil industry, as a mass of consumers we could get prices, down but it takes an on mass response from us the consumer. Learn to shop wisely, every basic essential in a food basket goes on sale , once in a 13 week period, and that is when you should buy in multiples of six, for your needs, as we all need to eat.
As for our vehicles, leave them at home more, and walk more to the corner store, or to your area plaza, you will be healthier for it, and have money in your pocket.
Enough said.
Posted by: Rick | May 11, 2021 5:38:25 PM
I also scan the flyers for deals prior my bi-weekly shopping trip. I stock up on the 'real deals', and then stick to my 'needed' list for the period.
One area that royally tee's me off is the children's snack packs for lunches, be it granola bars, fruit chews, etc. have downsized to five per pack vice six. Irritating to say the least for parents of two children.
Even more annoying is the great sale price that gets a shopper in, to find it is temporarily 'out of stock'. Having spent some time in the stockrooms before my curent carreer, I know that it is relatively easy to ensure the store has the required product prior sale dates.
The hands down biggest money saver in my house has been the relatively new habit of meal planning the week(s) prior the shopping trip, and then making a required ingredient list to purchase. This helps avoid the 'impulse' buying that blows the budget.
Posted by: Carol | May 11, 2021 5:39:25 PM
It is interesting to read these comments as people seem to think that manufacturing costs, and retail costs never increase. Everything from the power to run refrigeration, to the fuel to get the product to the store, to giving raises to the employees that work hard to ensure that the consumer has the product to choose from on the shelf at a sale price (often losing money on those items). Food stores run of a profit of often less than 2 cents on the dollar. Isn't it a shame for a company- manufacturing or retail to try and maintain that profit even in light of rising costs...or I guess they could go the way of other businesses today and just lose money forever...how's that working out for all those Auto Industry employees today?
Posted by: Garry | May 11, 2021 5:54:59 PM
Jeanne, I would like to know the company you speak of that markets direct to the consumer.
Posted by: Wen | May 11, 2021 6:52:04 PM
I noticed this past week Miracle Whip is now in a new square type container but of course less in it.
Just in time for salad summers
Posted by: viratoro | May 11, 2021 7:28:37 PM
Loblaws profits increased by 73%. They saw that this is due mainly to inflation in grocery products,
At their Great Canadian Superstore milk has gone up to $4.25 per gallon. Their cheese 900mg has gone from $7.78 up to $9.98. Only two examples of blatant price manipulation.
They have adopted ploys of having goods low down with a lower price highlighted, and in small letters only if bought in groups of 4, just to hoodwink the customer.
It is ironic that in a period of little inflation, and poor economy, that we are being screwed.
Posted by: viratoro | May 11, 2021 7:35:13 PM
We live on the border close to Whatcomb County,Washington. It has an area bigger then the whole of the lower mainland, with a population of 186,000.
At this time gas is 75 cents per gallon, milk $1.75 per gallon, and 2lb. of cheese is $4.40 .
They have been hit really hard by the recession, with lots of foreclosures.
How do they maintain significantly lower prices
Posted by: weightwatching fat mama | May 11, 2021 8:06:21 PM
another thing we do is advertise an item as "fewer calories", when all we've done is shrink the size.. hahahahahaha.. gotcha suckers.. feedback@kraft.ca
Posted by: Mick | May 11, 2021 8:27:04 PM
Just wait till every Wal-Mart starts to compete with the large grocery chains. Maybe then we'll see some REAL competition!
Posted by: Tweets | May 11, 2021 8:45:03 PM
Dear Carol,
Wow! You must work for a major grocery chain? Talk about a canned PR response. Making profits of $0.02 cents on the dollar? Guess what? I used to be a Store Manager for Safeway in Western Canada. Let me tell you that all Safeway (and other retailers) are in business for is to make huge profits. Safeway would not even carry an item if they couldn't make at least 35% profit on it. Can't find one of your favorite items anymore? Guess what? They discontinued it because they weren't making the margins that they used too. There are way to many products fighting for shelf space in grocery stores, so if you aren't producing, you get discontinued. It pisses people right off, including myself. They are your typical greedy corporation, who only cares abour profit and doesn't give a s*&@ about their employees. That goes for management as well. Next time your in the grocery store that raves about their awesome service, try finding an employee on the floor or get someone to pack your groceries for you. There's no one because they don't want to spend the money on labour. Most Safeway's nowadays, even have self serve tills. Wow what a great sign of the future.
Posted by: old and tired in Elliot lake | May 11, 2021 9:51:29 PM
Here we have 2 economy grocery stores; prices are much lower than in the southern part of the province, we save 1/3 of what we used to spend 5 years ago.
I used to have a list, but kept forgetting to read it, so now just go and try to remember.
Problem with that, every 2 weeks the store keeps moving items around, so you either forget to buy the bananas because you did not see them, or you spend 5 minutes searching.
That's when all the shelves are full, half the time, stuff is sold out, and you have to wait 2 to 3 weeks sometimes to get the brand you want.
So you stock up, when it finally arrives and cause the problem. Prices go up and down; we eat less and less; never eat out; and often just have cereal and milk for our nutritrious meal.
I complained to the store manager once about moving the merchandise all the items; after all we are in Elliot lake, the highest senior population in Canada; we are too old and tired to run around the store to find our groceries; I know... the more time we spend in the store... the more we are going to buy... GET REAL.
Posted by: John L Campbell | May 11, 2021 10:04:48 PM
We live in a city that will not allow Walmart to increase the size of its' grocery area because the city has decided that it will hurt a store (A&P) Metro that claims it is already running at a loss. Stores like Food Basics have lowered the cost of items in their stores which we see causes the prices to be lowered in the other chain stores. Sometimes the quality is not as good but it has helped. We as consumers need to look at the 100 mile challenge with a bit more of an open mind. Maybe put the profits in the right pockets once in a while. I could not do it completely, but we have local markets that I am sure can be a benefit to the farmer rather than the big boys. This is something that would have to be controlled to be sure we are getting Ontario or local products rather than a product of a foreign nation. Why at strawberry time do we still sell strawberries from California in our stores to mention one item?
Posted by: mizz kraut | May 11, 2021 10:05:16 PM
I always watch each item go thru the till - do not pack my groceries until all items have been scanned. That way I catch any items that are not correctly priced - many times the computer price is not what is on the shelf. The shelf price prevails so then I spend the extra few minutes getting my product cost adjusted for the misspricing - in many cases that means they must GIVE it to you for free for the lower cost. This happens regularly - especially at Superstore. Even Save-On will try and slide thru on this matter. So remember your prices and watch the till - it could be money in your pocket.
Posted by: cheeser | May 11, 2021 10:17:19 PM
Cheese sizes keep decreasing!!
Cheese blocks used to be 1 kg about fifteen years ago, then they went to a 900g then a 750g then a 600g and now a 520g. The cheese that everybody buys is the one that goes on sale like Black Diamond for as little as $3.99 or $4.44. Like Carol says they lose money at this price. The regular price is around $7.77 for a 520g block. The reason the companies keep downsizing their products is because they know at what price they can sell a product for any higher and it will not sell. Could you imagine putting a $15.00 block of cheese in your buggy. I know i wouldn't.
Posted by: LParsad | May 11, 2021 10:18:48 PM
This sure is the case, and the right methodology I use is shop and stock up when there is a sale. Last week I was over at Sobey's and they had Christie Cookies 2 for $5. I picked up a few boxes. Later in the week, I saw the same at No Frills for $3.37ea.
I guess it depends a lot on how much time one has to spend doing grocery shopping. I mainly use No Frills, but whenever I am driving by a store, and have the time, I go in and check out the items on sale.
And Walmart is same strategy as other Superstores now a days. They are no longer the same as they were in days of Sam Walton. He truly understood the power of the customer, and wanted to offer a real value.