Hi Northern Boy,
What you describe is a tactic called 'selling up'. If you ever go to a burger joint and the assistant asks you if you would like extra fries, or a giant Coke etc. it is the same thing.
Supermarkets will be doing this to try and create more revenue in a shorter timespace. Selling a case of soup, although being cheaper will be more profitable for a supermarket because of the less time the products are kept on the shelves. Once the product has gone, they can replace it with other products and try and sell those as quickly as possible also. This creates a higher turnover (not profit) which keeps the cashflow up so the business can pay the constant operating costs, like wages, energy, rents etc.
In this time of economic crisis, this selling up, I imagine has become more evident as the need for this cash flow will be heightened as the consumer tightens their purse strings.
You are right to see this recently over the last few months, as the economic crisis seems to be getting hold.
I remember being in the UK last year when Woolworths (UK) went under and in an already depressed city just before Christmas EVERY shop had massive discounts to try and keep revenues up.
Great for the consumer in the short term, difficult for the shop owner.
Best regards,
Steve
Quote:
Originally Posted by Northern Boy
I don`t know about Oz, the States or the European nations But what I`ve noticed the last month or so is that many chains are now selling things in bunch`s rather than individually . Bread 3 for $5.49 as well as many other things and one chain has dollars daze where certain things go on sale fro a buck. They have been doing this dollar daze for a while now but lately I`m seeing people starting to stock up on things like buying whole cases of soup brown beans and such. Today at Walmart 2 cases of bottled water 24 bottles per case for $5.00 at 9:30 this morning they had 2 skids full by the front door I picked up a couple of cases . At 6:00 pm I went back to get something else and the two skids were almost empty. When i see things like this its to me anyways , like quietly they are telling us to stock up with out really coming out and saying it
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