Is it just me that thinks ...

sexobon · 11-25-2012, 07:18 PM

As competition with other stores stiffens, they have to reduce prices and their profit margin falls. To boost profits again, they find cheaper suppliers for the existing store brand and substitute the store brand for independent brands wherever possible. They change the store brand name so customers will know to expect something different and won't accuse the store of pulling a fast one (the cheaper suppliers may provide lesser products). The store brand may be changed to something that doesn't carry the store name until the products are time tested and deemed to be acceptable in quality and of relatively good value by consumers. The tracking and data mining occurs when you use some type of "membership" card to obtain discounts.

xoxoxoBruce · 11-25-2012, 09:41 PM

Quote:

The average number of items sold at a supermarket has ballooned to more 38,000 today from 10,425 in 1977.

Our local ACME Markets, part of the Albertson chain, sells the private brand "Essential Everyday".

Couple of visits ago, at Pathmark market, I asked the guy stocking the cookie shelves if he could tell me where something was. He apologized profusely and said he didn't work for the store, he worked for a supplier. I knew the soft drink companies do that, but didn't realize other suppliers were also. I wonder if the markets are pushing the suppliers to do it to cut labor costs, or the suppliers are offering it to bargain for more shelf space.

The competition is brutal around here, as I imagine all the densely populated areas are. In order to promote the bottom line, stores are "auctioning" shelf space to suppliers who want to expand their lines, promoting self-checkout to cut cashiers, and pushing store brands with larger margins.

glatt · 11-26-2012, 07:11 AM

I hate that auctioning shelf space shit. When I want to buy my brand of whatever, I don't want to have to look forever to find it, or discover it isn't being stocked to make room for the 30 linear feet of Cheerios shelf space where they have all their different flavors and sizes stocked 3 or 4 boxes wide for each type.

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11-25-2012, 07:18 PM	#1
sexobon I love it when a plan comes together. Join Date: Oct 2009 Posts: 9,793	As competition with other stores stiffens, they have to reduce prices and their profit margin falls. To boost profits again, they find cheaper suppliers for the existing store brand and substitute the store brand for independent brands wherever possible. They change the store brand name so customers will know to expect something different and won't accuse the store of pulling a fast one (the cheaper suppliers may provide lesser products). The store brand may be changed to something that doesn't carry the store name until the products are time tested and deemed to be acceptable in quality and of relatively good value by consumers. The tracking and data mining occurs when you use some type of "membership" card to obtain discounts.

11-26-2012, 07:11 AM	#3
glatt ™ Join Date: Jul 2003 Location: Arlington, VA Posts: 27,717	I hate that auctioning shelf space shit. When I want to buy my brand of whatever, I don't want to have to look forever to find it, or discover it isn't being stocked to make room for the 30 linear feet of Cheerios shelf space where they have all their different flavors and sizes stocked 3 or 4 boxes wide for each type.

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