Beginning Thursday, January 27, CNBC is airing a special report, Supermarkets, Inc., which takes viewers on a tour through the latest innovations and technology available to grocery stores, and discusses the behind-the-scenes work that goes into luring consumers into shopping longer and buying more. The report even featured an expert, who claimed that shoppers are not as smart about grocery shopping as they would like to think.
How about you? If you've seen the show, would you be convinced to shop at the Pittsburgh store where opera singers perform? Or would that sound send you out the door, hands over your ears and minus your groceries? Do the cooking demonstrations make you stop and drop your list and buy what they're pushing, or do you see those kiosks as a pause for a quick snack?
If you are spending more at the grocery store, don't blame the stores. Supermarkets are a $500 billion a year business, accoring the CNBC's report, and the profit margins really are as small as advertised, about one-and-one-half to two percent. That means grocers are fighting harder for your money, and they are spending time and money to do it. From moving bakery departments to the front of the store (so the smell of fresh bread tempts you), to installing coffee bars, to hiring piano players, they are getting your attention, and your money. Manufacturers spend millions on product packaging, and just as much on product placement, delving into the minute details of the meaning of "eye level," promotional display design and how to get their product somewhere among the average supermarket's 48,000 items, all so it can end up on your home shelf.
With all the enticements of the new "super" supermarket, does the frugal shopper stand a chance? Yes, by using common sense and some new battle tactics:
- Know your store(s): Store loyalty can be as much of a budget-buster as brand loyalty, but it makes sense to know the places you shop. Wandering aimlessly through a store's aisles means exposing yourself to excess temptation. Keep in mind that all stores in a chain are not laid out the same, nor are all chain's stores in a city or district.
- Know which stores create the most needless temptation for you, and stay out of them. In Palm Beach Gardens, the Publix Greenwise market has its bakery, pizza ovens and coffee bar at the store entrance. Whole Foods' elaborately staged produce section is at the entrance of their store. Know your triggers and avoid them.
- Regular basket vs. small basket vs. carry basket vs. your hands: The expert featured on CNBC suggested buying only what you can carry, but realistically, can you shop for a family that way? South Florida Winn Dixie has small push baskets, but most chains offer only the large ones and the carry baskets. If you want to buy less, put a cardboard box upside-down in the basket to take up space.
- Know your prices and keep a price book. The weekly sales flyer is a great place to start, but just because there are a few things on sale, does not mean the whole store is on sale. Saved money becomes a blown opportunity if you spend what you save on things you didn't plan to buy.
- The no-kids-when-shopping rule is a good one, if sometimes impossible to follow. Kids will ask, plead, whine and cry when they want what they want. Ideally, you will shop when they are occupied elsewhere. If you have neighbors with kids, get together and coordinate with each other; while some parents shop, the other parents watch their kids.
- Cash vs. credit vs. debit: Cash is ideal, because you have only so much to spend, and when it's gone, that's it. Plastic can be a money pit, unless you are disciplined enough to track and record your spending. If you have a credit card that offers reward points, grocery shopping is a nice way to rack up points. But watching what you spend and paying the card in full each month is essential, or the late fees wind up making the groceries even more expensive and the rewards moot.
Grocery store as three-ring circus? Supermarket as sideshow? Not for the frugal shopper, who goes in with a purpose and a list in hand and comes out with what they planned.
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