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Jan 31, 1998 · Now that it has stopped charging for its browser, Netscape is cutting prices on its retail products and compensating retailers for any losses incurred. Jan. 30, 1998 6:15 p.m. PT 2 min read
May 29, 2024 · Consumer prices have gone up about 19 percent since 2021, but grocery prices have jumped by about 25 percent. While inflation, which measures the rate of price changes, is around 3.4 percent right ...
- Whizy Kim
Oct 24, 2023 · Arts and crafts retailer Joann said in an earnings call last month that it is expecting to save a total of $60 million in product costs as it plans to negotiate with vendors in all its product categories. In May, retail giant Walmart said that it is working with suppliers to cut prices. Amazon, on the other hand, has been pushing 1P vendors to ...
- Maria Monteros
- GAZETTE: You and your colleagues have been looking at the price increases of recent years to determine what’s driving it. What did you learn?
- MacKAY: We examined markups for consumer products sold at grocery stores, drugstores, and mass merchandisers from 2006 to 2019. Our approach was to use econometric models to estimate the markups consumers faced on these products.
- GAZETTE: A price increase is what consumers see at the checkout counter, but it’s not the same as a markup. Can you explain?
- MacKAY: There are different ways you can define markup, but one common way is the price-cost margin — the variable profit to the firm from selling a product.
- The Price Strategies of The Big Supermarkets
- The Rise of ‘Shrinkflation’
- The Importance of Own Brand
- Can Retailers Keep Prices static?
There are many different value strategies retailers can take, and a quick glance at the fiercely competitive supermarket sector, which is extremely price sensitive, shows this in action. Inflation is taking its toll in the sector; Kantar found thatgrocery prices saw the biggest increase since December 2011last month, up 5.9% year on year. This is s...
Another strategy evident, particularly in the grocery and discount sector, is shrinking product sizes and keeping prices the same. Consumer rights group Which? Found that Nescafé Azera Americano decaff instant coffee shrank from 100g to 90g in Tesco in February this year but its price remained at £5.49. That is an effective price increase to shoppe...
These myriad pricing tactics are being harnessed elsewhere in the industry where price pressures are also fierce. Superdrug chief commercial officer Simon Comins tells Retail Gazette: “We, like every retailer at the moment, are facing pressures to raise prices. Some of these price rises, especially across branded products are out of our control.” C...
In the face of rising inflation, is it possible for any retailer to freeze prices? The experts think not. Brewer says: “The reality is that the scale of price rises are such that very few retailers have sufficient gross margin, let alone net margin, to enable them to take the hit to their margin. “We expect to see almost all players increase prices...
May 15, 2024 · However, the best answer would be that the supermarkets are adapting to meet the changing demands of consumers in an increasingly price-conscious market. Consumer behaviour is developing a more ...
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Jun 11, 2024 · 5 takeaways from the latest markdowns by Walmart, McDonald’s, Best Buy and others. By Abha Bhattarai. June 11, 2024 at 6:00 a.m. EDT. Lower price signs hang from an aisle at a Target in May, in ...
