Study: Consumers' frugality may drive down prices

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MackerelCat
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Study: Consumers' frugality may drive down prices

Post by MackerelCat »

https://www2.deloitte.com/xe/en/insights/industry/retail-distribution/consumer-behavior-trends-state-of-the-consumer-tracker/rising-food-prices-inflation.html

If you love graphs, this article is for you. It's a pretty good look at inflation and high food prices in the United States, Great Britain, parts of Europe, and Australia. About 2/3 of the way through is the speculation that continued frugality by food shoppers might eventually drive down prices, as grocers will stock what sells: store brands, alternative sources of proteins, less expensive foods.

However, I think it fails to take into account the variables that lead to higher costs: food shortages, loss of farm land, climate change, avian flu, the war impacting the harvest in Ukraine, plain old greed. It notes that food prices stopped climbing in the UK but people are still spending little, with the article not taking into account the punishing increase in natural gas and electric costs there this winter that the population has to budget for.

So I am not thinking just yet that my love of lentils and manager's markdowns can put a stranglehold on grocery costs for the nation, but it is an interesting read.
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LWolfT
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Re: Study: Consumers' frugality may drive down prices

Post by LWolfT »

Well, that was a bit heavy on the graphs, wasn't it. ;)

I think consumer spending can have an effect if it affects the supermarkets' profit margins. I read an article a few weeks ago that said Whole Foods was leaning on its suppliers to lower their prices. Though that may be an isolated case.

But you're right, it doesn't take into account the other issues you mentioned. Lately, I've wondered if the storms hitting California and the upper Midwest are going to affect the availability of produce or grains later this year.
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MackerelCat
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Re: Study: Consumers' frugality may drive down prices

Post by MackerelCat »

LWolfT wrote: Sun Mar 12, 2023 11:01 pm Well, that was a bit heavy on the graphs, wasn't it. ;)

I think consumer spending can have an effect if it affects the supermarkets' profit margins. I read an article a few weeks ago that said Whole Foods was leaning on its suppliers to lower their prices. Though that may be an isolated case.

But you're right, it doesn't take into account the other issues you mentioned. Lately, I've wondered if the storms hitting California and the upper Midwest are going to affect the availability of produce or grains later this year.
Yes, I think grocers will have to try to adapt because their profit margin is quite slim, so they must offer what will sell. Whole Foods has the advantage of being owned by the world's richest guy in putting the squeeze on suppliers.

In our favorite grocery store, I never see a full cart any more unless Cokes are on sale. People are not buying anywhere near as much food as they used to.
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HappyDaze
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Re: Study: Consumers' frugality may drive down prices

Post by HappyDaze »

Speaking of those manager's markdowns, my grocery store has stopped putting the "rescued produce" in red net bags for .99 cents. It is now wrapped in plastic and is a certain price per pound - sill cheaper than the regular prices but much more expensive than it used to be. I think that is just plain greedy - just my opinion.

I have had good luck lately getting reduced price salad kits - grabbed a couple for $2.30 the other day and had one for lunch at work yesterday, will eat the other one this weekend.
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floridacatlover
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Re: Study: Consumers' frugality may drive down prices

Post by floridacatlover »

HappyDaze wrote: Sat Mar 25, 2023 5:08 am Speaking of those manager's markdowns, my grocery store has stopped putting the "rescued produce" in red net bags for .99 cents. It is now wrapped in plastic and is a certain price per pound - sill cheaper than the regular prices but much more expensive than it used to be. I think that is just plain greedy - just my opinion.

I have had good luck lately getting reduced price salad kits - grabbed a couple for $2.30 the other day and had one for lunch at work yesterday, will eat the other one this weekend.
This week Fresh Express salad kits are B1G1 at Publix. They are now $5.49 (up from $4.99) so come out to $2.75 each with the sale. I’ll buy two more on the last day of the sale.

Publix never has rescued produce and I also never see it at Aldi. Another store here, Winn-Dixie, used to put it out on Sundays but once they remodeled the store that ended.
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LWolfT
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Re: Study: Consumers' frugality may drive down prices

Post by LWolfT »

floridacatlover wrote: Sat Mar 25, 2023 9:04 am
Publix never has rescued produce and I also never see it at Aldi. Another store here, Winn-Dixie, used to put it out on Sundays but once they remodeled the store that ended.
I've never seen rescued produce at Aldi, either. My Kroger is hit and miss. Picked up a couple of red grapefruit yesterday, and that was the first time I'd seen anything on the produce markdown bin in months.
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