Sarah Squire- CLTC, RICP on LinkedIn: Shrinkflation is making trips to the grocery store even more expensive… (2024)

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Navigating Shrinkflation: A Savvy Shopper’s Guide As supermarket prices climb, a subtler form of cost increase emerges ‘shrinkflation’ and it is becoming more prevalent. Shrinkflation occurs when manufacturers reduce the size or quantity of their products while maintaining or increasing prices, often subtly altering packaging to mask these changes. This tactic is their response to rising production costs, allowing companies to avoid overt price hikes and hoping consumers won't notice the reductions. The problem is we do and the tactics used erode trust between brands and consumers. Consumers must become vigilant to avoid being shortchanged. Checking unit costs and packaging details, like weight and quantity, is essential. Pay attention to changes in packing including terms like estimated weights marked with an “e,” as these can be less reliable. By comparing these details across products and looking at your shopping habits, such as buying in bulk, focusing on unit prices and looking at alternative brand lines - consumers can ensure they are getting the best value for their money. #ShrinkflationAwareness #SmartShopping #ConsumerRights #PriceCheck #BudgetingTips

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Is it a gimmick or is it a smart strategy? We'll have to wait till after this holiday season to get the full picture. Curious to see if this helps with inventory turnover. #Retail #RetailStrategy

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What a click bait title... and it's simply misleading. If retailers really were jacking up prices to squeeze consumers, we would have seen gross margins going up - they haven't been. Most public filings and data shows that retailers have been passing on their own increased costs. Most retailers can’t control pricing upstream, and it’s painful for them to see the results of shrinkflation, inflation, and other supply chain disruptions driving prices up for their customers. In this article, Ikea is mentioned as one of the retailers that’s slashing prices on discretionary items. That’s great that they have the control to do that because of their vertical integration, but most retailers aren't vertically integrated.However, I do agree that looking beyond 'press release style' price cuts at other ways to boost sales is a great idea! Retailers should focus on understanding their customer's holistic shopping needs (through loyalty programs and more) and highly tailored offers to differentiate themselves. And retailers who use data intelligently know how to target specific offers to win customers over the long haul.#retailnews #economy #retailing #retailindustry #shopping

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If one local retailer sells an item I enjoy at a price of 8 for 9.99 everyday, and 8 for 6.99 on sale, and another retailer sells the item individually for 2.79 each, - and both of these retailers have significant clout and buying power, so there is no excuse in that regard, - is that considered inflation, or greed? And... if it is not inflation, which we know we seem unable to combat, and it is greed, then is it time to figure out how we can combat that in an organized manner? We have let 'over-pricing' through greed and the reduction of competition in our marketplaces drive up prices for a really long time. Now, the problem is full blown, out of control, and at the same time, not even appearing on the radar as a problem altogether. How do we turn around now and repent for these wrongdoings? How do we get the problem on to the radar, investigate and pinpoint the causes of these unfairly high prices, and then, once the problem is recognized, start to try to solve the problem? I'm sorry to get all technical on everyone, but one store selling the same product, in the same brand, in the same size serving, in the same town, for four times the price, can not be blamed on 'inflation'. This is price gauging, pure and simple. And in many cases it is so widespread that the seller at one quarter of the price doesn't exist and isn't an option.

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According to the NRF, on a yearly basis, sales in May witnessed an increase in six out of nine retail categories, with health and personal care stores, online sales, and grocery and beverage stores taking the lead. Additionally, on a monthly basis, sales were up in all but two categories.#retail #sales #economy

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https://lnkd.in/dbBDaQiRGood morning Fellow SA LinkedIn's!📌#Cost competiveness at the #tills.#Savings in any form... is crucial when #inflation sits at 7.1%, at end March 2023. Yes, it's hard hitting our food baskets! I understand that we are to expect another 25 basis #interest rate hike, in May!🧐Please check out your favourite #retail outlets, and where do they stack up in terms of #pricing effectiveness.Although, I must point out a very important factor here.... #Massmart is a #wholesaler to our Spaza shop retailers. The concept of #bulk buying pricing model is adopted, and upon this they are the cheapest. I love the bulk buying #discounted feature...we adopted this when we had a wholesale and retail store....so Alex and myself would adopt that mindset when we grocery shopped as well! Why not? you buy at #sales.. bulk, or for example Checkers Hyper concept works like this, by you having a #store card...the deals are cost saving intended....when buying #two of the 'same #products deals,' you get a huge discount. #Prudent Stewardship is needed, as a thrifty shopper....in challenging economic times... to conserve much needed resources 🛒 #Encouraging Savings 🤑💵 and Investing 🤝

Higher prices (vs. more units sold) are boosting grocery profits. Even if inflation abates, high prices will continue to squeeze our budgets and reinforce price-conscious grocery habits.Expect more consumers to keep costs down by sticking to: 🍎 Buying less🍊 Discounters🍋 Dollar stores 🥑 Deal-seeking🍇 Private labels🍓 Value-tier goods🍌 Switching to cheaper brands See the recent RetailWire article and add your thoughts, too: https://lnkd.in/gCp8G9pSHow, if at all, have your grocery shopping habits changed this year?#retail #ecommerce #grocery #CPG

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Many retailers are predicting that consumer spending patterns in 2024 could be similar to 2023—pulling back on discretionary categories and sometimes essentials like groceries. So far, discount and dollar stores have benefited from tightened consumer spending, but that success isn’t guaranteed in the new year. Here’s how three low-price retailers are planning to appeal to consumers and keep sales up in the months ahead.#retailnews #dollarstores #consumerinsights

This article from Forbes shows what we already know, consumer spending is slowing and shifting as the economic uncertainty lingers and interest rates continue to climb. In times like this, retailers and manufacturers have to get creative in how they spend their marketing dollars. Discounting items can be effective, but also boring and lacking engagement. Offering rebates is a compelling sales technique that engages the customer after they've left the store (or website) and prolongs the customer journey. Rebates also provide more "bang for the buck" to retailers and manufacturers running the rebates and make their marketing dollars go further.#rebates #customerengagement #customerjourney https://lnkd.in/g7M2U2Jg

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