Supermarkets, Inc.: Inside a $500 Billion Industry

Wow, I just got through watching this MSNBC program on supermarkets! Did you know that we are all participating in the largest running psychological experiment ever when we go grocery shopping? I jokingly say I don't sign up for the 'loyalty cards' - those little things that go on your key chain - because I don't want to be on another database. Well, this program talked about how those loyalty cards are used to 'profile' your buying habits down to the penny. You might save a little money, but the store builds a growing database on you and learns how to entice you even more to spend.

There are 35,000 supermarkets in the US. On average they carry about 48,000 products. Since the profit margin is very small - 1/2 to 2% - supermarkets do everything they can to get us in the store and to shop more. Milk, butter, and eggs are placed in the back of the store so that by walking through the store we'll be more apt to buy other things. No more straight, up and down aisles in new stores. They make you meander through them to draw your attention towards more items. Shopping carts are getting bigger, which makes you buy more to fill them up.

Other interesting segments of the program were onWhole Foods Market, the battle for shelf space, and independent grocery stores (barely 1 in 5 stores are independent). Tomorrow I'm going to look to see if there is a CD on the show.

In closing, a psychologist on the program recommended three tips to spending less in a supermarket: 1) don't bring the kids, 2) don't use a shopping cart; and 3) don't use a credit card.

Food Prices in Your Neighborhood

It's Thyme to explore food prices in your neighborhood. For the past year we have dedicated a part of the Community Food and Nutrition Institute newsletter to exploring food prices in your neighborhood. This piece has focused on the difference in prices of a market basket in a particular zip code. I hope that this has been worthwhile and has provided valuable information as you attempt to find the best food prices in your neighborhood. The first blog for January 2011 is dedicated to this topic. I will write several blogs this month, so be sure to follow closely. Food prices are a very important issue to me personally because prior to moving to the city of Baltimore, I lived in Columbia, MD. While there, I was privileged to have 4 grocery stores within a 10 mile radius of my house. Well, when I decided to move to the city, I was intrigued with the fact that my neighborhood had so much food, culture, and entertainment within walking distance. I didn't realize that the food in the neighborhood was mostly restaurants. I hadn't even taken time to scout out grocery stores. I was naive in thinking that the city presented a mirror image of the food environment in Columbia. I soon found out that in my neighborhood the closest market was Safeway. And, for lack of a better term, I felt it was overpriced when compared to other neighborhoods throughout the area, and that there were only smaller mom and pop and convenience stores. I decided to seek out alternative venues for food. My new focus became seeking out variety and lower cost food. I was surprised to find that there are many hidden jewels in the Charm City. My favorites are the Baltimore Public Markets and the Farmers Markets. I love these markets because they allow me to get produce in season that is lower in cost and it also allows me to eat locally grown food. For the next couple of weeks, I will present to you, how to find the best food prices in your neighborhood. Sit back and relax, it is Thyme you spent less money on the food you enjoy!