Today, I’m going to tell you how supermarkets get you to spend more money and control your food shopping experience. The majority of grocery store profits are not from markups on products! Around 50% to 75% of grocery store profit is from real estate, known as slotting fees. Food companies or brands spend money to have their products placed in prime locations in the grocery store.
Companies want their products in “the golden zone,” right at your eye level. This can lead to 8 times more product sales! Grocery stores use numerous marketing tactics to control your food shopping experience, such as manipulating grocery store layout, artificial smells, and floor texture to slow you down.
Supermarkets will place high-priced items near low-priced items and use color marketing tactics to their advantage. They also use social proof, such as retail tricks like “best seller” or “customer favorite,” to boost sales. The cereal aisle is the most profitable aisle!
Around 16% of the total sales of a grocery store are purchased from the front of the store! It’s no coincidence that candy lines the checkout aisle.
Labels are also very tricky, and similar marketing tactics are employed! Just because a product is labeled “natural” or “organic” doesn’t mean it’s not filled with sugar and starch.
To combat these supermarket tactics, avoid grocery shopping with kids or if you’re hungry and tired. Write a list and stick to it! Shop the perimeter of the grocery store, and don’t go into the junk food aisles.
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