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Supermarkets and the loss of Customers

10/07/05, by Kate Hopkins Email 2257 views • Categories: Food, Shopping

There was a fantastic article in the New York Times entitled "An Identity Crisis for Supermarkets" (LI:accidental PW:hedonist)which touched upon several items relating to issues we've alluded to here before.

There's two things that are very apparent when reading the article:

1. Supermarkets know that there is a huge problem.
2. They have no idea on how to fix it.

Oh, they have ideas. Cutting prices is always a good thing, and will always meet with my approval. But the Safeways and Krogers of the world are addicted to cash. Until they get rid of the slotting fees (which are in large part the cause to the higher costs of many items), they'll only raise the prices of some other product to ensure that others are lowered.

What are the products that they will most likely apply the high prices? The organic and natural food items as well as the prepared foods for quick lunches and dinners. If you think I'm kidding, check out the prices of a turkey sandwich the next time you head to your supermarket - at the last check in my neighborhood, hey were running at four dollars. Considering a person could get a better quality sandwhich at the Subway next door, this pricing model is not likely to last.

Other solutions mentioned in the article are simply ridiculous and don't address the larger issues. If you're a company spokesperson, and you're extoling the virtues of your new olive bar, or are beaming with pride at the fact that you've moved your ice cream freezers to the front of the store (to prevent the ice cream from melting you see), then your company is in big trouble.

Because the problem of supermarkets isn't the lack of olives or that I have to rush home to save my fudge ripple. The problem is trust. I simply don't trust the Safeways and the Krogers of the world.

I don't trust them to put quality meat into the meat counter, because they removed butchers from the store long ago. I don't trust the produce department to have the best tasting produce available, because supermarkets have removed any fruit or veggie that couldn't sit out on the shelf for longer than four days. Oh, and they replaced knowledgable produce staff with people who couldn't tell me the difference between a sweet potato and a yam.

Their dairy departments have practices that almost destroyed the small milk producers and the artisinal cheese makers. Oh, and the markets shelf space is up for sale to the highest bidder, rather than to the companies who have the consumers best interest in mind.

Granted, I'm not representative of your typical shopper. I probably put a little more thought into supermarkets than a great majority of people, but I'm willing to bet that trust ranks high on many people's minds when it comes to supermarkets, even if they can't communicate why they don't trust these mega-corps any more.

But who knows? Once they put in their softer lighting and their wood-simulated floors, they may get my trust back. Because clearly that's why people haven't been shopping at these places as much as they used to.


Comments, Pingbacks:

Comment from: Sarah [Visitor]
I have to pipe up and say that there is hope in some quarters -- our local Shoprite chain has been improving for years now (and they have very little competition, the closest Whole Foods is about 45 minutes and $10 in tolls away) They have butchers, bakers and fish -- whatever you call the fish guys. Workers who can answer your questions about products. Lots of ethnic variety. Large organic sections, plus a house brand of organics. Promotion of area-grown produce and dairy products, as well as other local products (sodas, beers, etc). Recently they've started adding weird artisinal breads to the bakery area. I'm sure they still engage in a lot of bad practices, but they're a really viable option and much more affordable than Whole Foods (even not counting the cost of the trip). I have no idea what their motivation is, especially since their customers are more or less a captive audience. (although we do have an incredible number of local butchers, fishmongers, bakers, etc here that they are competing with, now that I think about it!) But I'm glad they're doing it!
PermalinkPermalink 10/07/05 @ 07:56
Comment from: Hollis [Visitor] · http://rurally.typepad.com
Interesting that you comment on this topic. I live in a small town in very rural Upstate New York with 2 grocery stores. One is very small and usually understocked and always struggling. The other, well, is leaving town. They have made the corporate decision to consolidate and close many stores any distance from their core market. I have started to wean myself off of these stores, buying as much as possible from other sources: the local farmers' market, direct from farmers, etc. and buying non-food items once a month from a big box, i.e. BJs or Sam's Club. I have sacrificed some convenience, but also know I have shifted my buying power from a corporate source, in many instances, to a local one. I would much rather help a local farmer than make Wal-Mart even richer. There are better ways, some more difficult, but still better than relying on corporate food. I actively seek food grown or produced within 50 miles from my home. This is time-conusimg but far less annoying than going to a corporate store and dealing with clerks who know nothing about the products and have no intent of serving the public. Shop close to home from the source.
PermalinkPermalink 10/07/05 @ 08:41
Comment from: Sonja [Visitor]
I was delighted by this article in the NYT. I'm not a right-wing Republican by any definition, but it seems that market forces are, for once, working for the better good. I have always made a point of sharing my dismay with grocery store management when confronted with limited and subpar selections. Not that I think my annoying complaints did much, but I think that the combined voices of others and our purchasing power is having an effect.
PermalinkPermalink 10/08/05 @ 15:52
Comment from: Sarah [Visitor]
Been out of town and offline but I wanted to say thanks to Nicholas for the info! I had no idea, turned out he was right about our local Shoprites. Very interesting.

I'm wondering, since there are so many places where supermarkets are the only choice for most people, has anyone really written about which chains/stores do what so you can at least try to suss out the lesser evil?
PermalinkPermalink 10/16/05 @ 10:02

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