Thursday, January 27, 2011

Battle for cash playing out in supermarket aisles

Grocery shopping only a minor expense? Think again.

The average American family of four spends $9,200 a year on food, rounded to $10,000 when paper goods and personal-care products are added to the mix. Overall, it's estimated that Americans spend $1.5 billion a day on groceries.

Yep, supermarket shopping is big business. And, there's a battle playing out in the aisles in front of you encourage you to spend more, according to a recent report by CNBC. In fact, stores are using both low- and high-tech tools to snag a larger share of the $500 billion a year business.

When a consumer walks into a market, they're being monitored. Stores are using brand-loyalty cards and video cameras to track your every move, analyzing buying behavior and figuring out what techniques inspire you to buy more.

For example, stores are doubling the size of their shopping carts. A recent experiment found that the average shopper buys 40 percent more with the larger carts. Apparently, size does matter. Also, newer stores are staying away from the typical straight aisles associated with old-school supermarkets and opting for a design that inspires shoppers to meander. Grocery staples—like milk, bread and butter-- are set up in the farthest corner of the store.

Other techniques like spraying produce and setting up the bakery at the front of the store are set up to appeal to the senses and ultimately entice patrons to buy more.

How can shoppers suit up and stay away from unnecessary purchases? Martin Lindstrom, a marketing consultant, offers several tips to outsmart the store.

His advice:
  • Don't bring the kids with you when you shop
  • Carry things in your arms instead of using a shopping cart
  • Use cash instead of paying with a credit card
Click here for the lowdown.