Rollbacks

[chowder]

Just looking at the Walmart flyer that starts Friday and I see they have alot of prices rolled back.With the price of fuel going up more and more,everyone is worried about prices climbing,but they are reducing prices.It has been said on the news that bread companies will be increasing prices but Walmart has lowered the price by 83 cents on Dempsters rye and whole grain breads.The last few weeks produce has been sooooo high and now lettuce,spinach $1.00.
We hear so much on the news about whats going to happen,and then you see this so makes you wonder.
I am in Canada but are you seeing this in the States as well?

[OOwl]

I don't know if Walmart is getting cheaper because I don't shop there, but I found this article interesting:
Which is cheaper, Target or Walmart? The answer may surprise you

[Contrary Housewife]

Walmart has so many stores they have the advantage of being able to negotiate extremely low prices from manufacturers. In some cases they've been reported to intimidate manufacturers into lowering costs. You can sell bread to Walmart for 50c or not at all. They'll find a vendor willing to drop costs just to get into their massive distribution channels.

Lettuce and spinach are early spring greens. They're coming into season in Mexico, so you're going to see produce costs dropping.

[shoiji]

At a large grocery store I saw some really good prices. Could not help wonder if they were also getting rid of stock for the new higher priced stock. Yup, I am starting to get paranoid about prices going up and am planning on stockpiling as much as possible. Still have my two years worth of detergent and cleaning products. Yup, starting to get paranoid. lol

[imagine]

Here is a grocery store that promises that it won't raise prices on at least 40things

"Wegmans selected 40 products that its stores will not raise prices on for the remainder of the year. “We considered the importance of an item to a family when choosing our list of 40,” Wegmans President Colleen Wegman said in a statement announcing the move.

“Such things as bananas, pasta, frozen vegetables and laundry detergent are in most shopping carts every week,” added Wegman. “They are products that families can’t do without, so what they pay for these items really matters.” "


Wegmans won?t raise prices on 40 items Local News Tonawanda News

[savvy_sniper]

Walmart's rollbacks are often a bunch of bull! Generally they have raised the price significantly and then lower it a little bit.

Target in my area is outrageously priced. I only buy a few items at WalMart that are either lower priced than HEB or Kroger or I can't buy them at HEB or Kroger.

I am finding that HEB is significantly lower for most of the items I buy (ingredients) than Target, WalMart, or Kroger. That is even with using my Kroger Plus card and getting a 10 cent a gallon discount on gas for every $100 purchased at Kroger. You have to constantly compare prices.

[imagine]

Could not help wonder if they were also getting rid of stock for the new higher priced stock.

Why would they have to get rid of old stock at a discounted price before stocking it with higher priced stock?

Couldn't they just raise the price of the old stock. If a new higher price is what the new going rate is it seems to me they could.

[HappyMama]

Why would they have to get rid of old stock at a discounted price before stocking it with higher priced stock?

Couldn't they just raise the price of the old stock. If a new higher price is what the new going rate is it seems to me they could.

It takes too much time for them to raise the price of old stock, they let it run out with the sku's and prices as is, get rid of and then wait for the manufacturers to send in the goods with higher prices when that happens.

[HappyMama]

Walmart has so many stores they have the advantage of being able to negotiate extremely low prices from manufacturers. In some cases they've been reported to intimidate manufacturers into lowering costs. You can sell bread to Walmart for 50c or not at all. They'll find a vendor willing to drop costs just to get into their massive distribution channels.

Lettuce and spinach are early spring greens. They're coming into season in Mexico, so you're going to see produce costs dropping.

Yes that is very true.

[imagine]

It takes too much time for them to raise the price of old stock, they let it run out with the sku's and prices as is, get rid of and then wait for the manufacturers to send in the goods with higher prices when that happens.

I still don't understand.

I see people walking around changing prices all the time up and down.

not trying to be rude or anything just trying to learn

[HappyMama]

I still don't understand.

I see people walking around changing prices all the time up and down.

not trying to be rude or anything just trying to learn

Yes , they do with goods that are price sensitive ( that can go up and down seasonally , with competitor sales changing signs etc) but not goods that have a permanent commodity price hike, that someone brought up might be of concern in this market. It has to do with their goods tracking system method as well, just easier to let old skus and prices when waiting for a hike, if that is the case. They might lower, roll back but sometimes means higher prices coming as they are ridding of old stock ( with older pricing etc) that is probably why some tend to think that might happen, as has in past. Not always indicative of market now just a good chance maybe. I know clear as mud right....lol sorry Hope that helps.

[chowder]

I am not sure whats going on but coming down 83 cents a loaf is a big drop.This is not old stock,this is being made now and with the price of shipping costs up, makes you wonder how the price goes down this much?If the prices were to remain the same I could understand it,but coming down doesn't make sense.The price of dish soap down,yeh maybe the old stock/price thing,but perishables???

[HappyMama]

I am not sure whats going on but coming down 83 cents a loaf is a big drop.This is not old stock,this is being made now and with the price of shipping costs up, makes you wonder how the price goes down this much?If the prices were to remain the same I could understand it,but coming down doesn't make sense.The price of dish soap down,yeh maybe the old stock/price thing,but perishables???

Yes Chowder, I do agree it is great they are coming down on perishables and getting some great prices out there for consumers with what is going on. That will really help some in this economy. Seems like many stores and companies are finding ways to keep prices down. So no I don't think all roll back prices are due to go up, just keep stocking your pantries or buying those goods that help your monthly grocery budgets any savings helps.

[imagine]

Yes , they do with goods that are price sensitive ( that can go up and down seasonally , with competitor sales changing signs etc) but not goods that have a permanent commodity price hike, that someone brought up might be of concern in this market. It has to do with their goods tracking system method as well, just easier to let old skus and prices when waiting for a hike, if that is the case. They might lower, roll back but sometimes means higher prices coming as they are ridding of old stock ( with older pricing etc) that is probably why some tend to think that might happen, as has in past. Not always indicative of market now just a good chance maybe. I know clear as mud right....lol sorry Hope that helps.

Actually what you said balanced with the much more in-depth marketing and economic lesson Hubby gave me at lunch I do think I see now. No mud crystal clear.

I also found this article which talks about commodity pricing and grocery store increases.

"On the positive side, commodity prices are a small fraction of food costs. Time for a little bit of good news. When you read a headline about soaring food commodity prices, keep in mind that on average just 20 cents of every dollar we spend on food is tied to the actual cost of the raw commodity, or what’s known as the farmer’s share. So just because the commodity price has jumped by a given percent doesn’t mean that the price for the finished food product will increase by the same amount."

"For example, according to the National Farmer’s Union, just 8 cents of the recent $4.39 cost of an 18 ounce box of cereal is the cost of the grains, while the $1.09 cost for a two-liter bottle of Coke includes just 9 cents for commodity costs (primarily the corn for corn syrup). On the other hand, 79 cents of the $2.59 cost of a dozen eggs is the farmers’ share, and $1.30 of the $3.99 price of a gallon of milk is the actual dairy cost. Granted, with the spike in oil prices, transportation and energy needed in the manufacturing process will impact prices, but there are indeed plenty of levers food producers can pull to keep prices down when commodity prices rise."

Food Companies: We’re Going to Start Raising Prices - CBS MoneyWatch.com

[chowder]

HappyMama.
I know my prices really well,in the nearest town where we shop.I check all flyers before they start and stock up on whatever is a good deal at the time.I buy coffee every year when $3.99 a can.Someone always puts it on for that price and I buy a years worth.With all the talk on TV about food prices going to soar,will I get that price this year? hard to say.Now I have to decide if I see it at 4.99 or 5.99 should I take the risk and wait for it to be lower somewhere else at a later time, or maybe buy at that price because thats as low as it will go anywhere this year.
I think the media is going to make folks change the way they do things,and maybe not for the good.