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.

Tax-free weekends hit several states

Ready to shop to 'til you drop? Several states are offering tax-free weekends, with Massachusetts serving up a two-day summer sales tax holiday in effect for Saturday, Aug. 14 to Sunday, Aug. 15 in Massachusetts.

In the Commonwealth, the tax holiday will apply to items costing $2,500 or less. The exemption doesn't apply to all sales of motor vehicles, motorboats, meals, telecommunications services, gas, steam, electricity, tobacco products and any single item whose price is over $2500.

Other states participating in the holiday include Connecticut, extending the tax-free period from Aug. 15-21 on back-to-school items including clothing and footwear under $300. Of course, residents of Alaska, Delaware, Montana, New Hampshire and Oregon never pay sales taxes.

The folks over at WhiteFence are serving up a slew of tips for those lucky enough to live in a participating state. Here's the list:

• Get There Early – Tax-free weekend is an incredibly popular event, so shoppers may want to get to the stores before they open.
• Make a List – As basic as it may sound, bringing a list of required school supplies and clothing needs ensures no items are missed, maximizing the savings potential.
• Stick to the List – By buying items not on the list, it can be easy to get off track and spend hundreds more than was planned.
• Compare and Save – Consumers can compare offers on home phone, electricity, broadband, broadband, natural gas, television service and more at WhiteFence.
• Shop Alone – Kids can make shopping both more stressful and expensive.
• Don’t Skimp – While it can be tempting to hunt out the lowest prices on big-ticket items, there’s no point in buying an item that will need to be replaced in a few months.
• Shop Around – While it can be convenient to buy everything at one store, the biggest savings can usually be found by shopping at multiple stores.
• Bundle Up and Save – One of the easiest ways consumers can save on their monthly bills is to combine their broadband, cable or satellite and home phone services together. At WhiteFence, consumers can find the hottest bundle deals from all of the top providers.

Click here for more information.