Here’s an interesting article from Coupons In The News. It references a new Acosta report that predicts most supermarkets will ditch sales and embrace an “everyday low pricing” strategy within the next three years. From the story:
Super-savers accustomed to collecting coupons and waiting for sales may shudder at the thought; Walmart shoppers accustomed to buying whatever they want, whenever they want it, may be pleased to learn they can get good deals without waiting for sales at other stores as well. Either way, it’s a bold prediction that, if proven true, could lead to a big change in the way people shop.
“It is expected that nearly 75% of retailers will be either EDLP (everyday low pricing) or some form of hybrid EDLP/High-Low format within three years,” the report reads, though it doesn’t cite specific evidence for how it reached that figure. It does, however, cite figures that lead it to suggest that “everyday high prices” aren’t working. 65% of shoppers surveyed say they “expect certain products to be on sale and, if they are not, they will wait until they are on sale to purchase.” Certain grocery products in particular, like soft drinks and ice cream, are on sale so often that the majority of shoppers won’t ever pay full price – over the past year, nearly 60% of such products are sold only when they’re on sale.
That suggests to AMG that shoppers need to be weaned from the full price/sale price cycle. Sound familiar? That’s the argument that JCPenney CEO Ron Johnson made this year, and his company is suffering greatly as a result.
There are some interesting points here, but of course as a couponer, the high-low pricing cycle is essential to what we do. Will this really pan out within the next three years? Perhaps – or perhaps not. The article ends with an interesting quote:
“Everyday low pricing is the format of the future, one supermarket insider predicted: “Whether you like it or not, and… a lot of high-low guys are doing a great job out there, the world’s heading the other way,” a Kroger executive said – in 1992.
Read the entire article at Coupons In The News
rswehrle says
On this side of the US we have a store called Stater Brothers. It is only in California, for now, but it does the “Every Day Low Price” strategy. However, there are still sales and good deals to be had, without the loyalty cards. We don’t get bonus points or rewards, but the prices do come down to be as competitive as a Jewel or Dominicks. It is all about the sales cycle. Happy Shopping.
Frugal Skills says
The major supermarket chain in my area has been gradually moving towards this since this past summer. They introduced a concept called “Locked In” prices where they drastically lowered the prices of many items and promised to keep that low price until January 2nd. These deals were almost exclusively on their generic products, and items that very rarely, if ever, issue coupons. It certainly didn’t impact my couponing much.
I enjoyed this new concept for two reasons. One is because the “Locked-In” prices were lower than their usual sale cycle prices. The other is because I didn’t need to or feel compelled to stock up because I knew the price would be low until January. Not feeling stressed out about how “I MUST go to market by tomorrow or else I’ll LOSE that great deal” was a nice bonus as well. Overall, I feel that I saved more money this way. I hope more markets embrace this.
Savermom2go says
Just FYI…went to JCP to see if any sales. My son and husband found Stradford suits for $20.00 (reg. $300.00), quality dress shirts for $2.00 up each, ties for $2.00 each, and much more. So if your man needs dress clothing, happy shopping.