A study of the habits of Canadian grocery retailers and the cost of gasoline published in the Journal of Marketing on March 10, 2011, has some direct hints for retailers and consumers in the Birmingham and Alabama areas concerning gas costs and the cost of food. The local comparison is from an article in the March 10, 2011, Birmingham News by Dawn Kent and a review of the research from the University of Alberta published at the EurekaAlert web site on March 10, 2011.
The research from the University of Alberta indicates:
Grocery retailers need to consider a gas price increases as a motive for making better food "deals" available to consumers.
Gas vs. Food poses a dilemma for consumers that is often decided by a retailer's prices.
Consumers will favor a retailer that offers discounted gasoline and a variety of discounts on food prices.
The retailer must tailor their pricing to customer needs and decisions if they want to retain customers and/or stay in business.
The article from the Birmingham News notes:
A 6.2 percent price increase overall for groceries in Alabama.
Beef and pork supplies are down.
Gasoline prices have surged in the last two months.
Fuel prices are considered to be the number one cause in the increase in food prices.
Retailers have absorbed the price hit to the extent they can without losing some profit.
No solution is offered for gas prices or food prices that would mediate their continued increase.
It really is consumer and retailers beware
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