Growing Food Prices Put The Sting To Traditional Grocers

Economics 101 teaches us that as wages go down, the demand for lesser goods goes up. That is exactly what’s happening around the country. According to a piece posted on the Amber Waves website an extension of the U.S government website on Statistics, which reports on ranch and farm, and natural resources of the country. This site reported that during 2007 the so called food at home spending was $417 dollar amount for an average family of four. They continued that food is the one budget item they a family can control over other fixed expenses such as rent or car payments. The down turn in the economy has lead families to shop at more discount retailers such as Aldi and Save-a-Lot. (Annette Clauson)

LighthouseThe sales of stores pushing low prices and good-value jumped between 2001 and 2008, while traditional supermarkets’ sales fell from 62.8 to 57.8 percent. Over the same period, nontraditional grocers, such as warehouse club stores and supercenters, grew their sales share from 11.7 to 18.1 percent.

Shoppers looking for even more deals starting shopping at no-frills, deep-discount retailers that sell branded food manufacturers’ surplus goods, inventory overstock, and reclaimed goods. Although food sales through stores selling surplus, overstocked, or damaged products are a small percentage of what gets sold in U.S., however they play a growing role in giving consumers the most for their money. To mention the Amelia’s Grocery Outlet, a salvage food chain in Southeastern Pennsylvania, reported a 25-percent increase in sales in 2008, up from a 17-percent gain in 2007.

While consumer food prices are expected to be moderate through 2009 from their 6.4-percent increase in 2008, the prospects for continued economic downturn and recession like conditions will continue persuade consumers to seek out discount supermarkets and nontraditional stores. In order to be able to provide for their families.

Annette Clauson, Phil Kaufman. Amber Waves. June 2009.

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