Friday January 11, 2008 10:37 PM ET | U.S. Markets are Closed
Login     Special Offers     Free Registration     Help

Market Top 10
S&P 500
Rus 2000
10 Yr Bd
Wil 5000
S&P 400
Nas 100
2072.11NO CHANGE

Newsletters Sign up now for FREE Newsletters

Enter your email address below
Personal Finance: Consumer Action: Ten Things Your Supermarket Won't Tell You

Consumer Action

Ten Things Your Supermarket Won't Tell You

By Anne Kadet |Anne Kadet Archive
Editor's Picks

RSS Feeds

1. "We trick you into paying higher prices."
Most of us have spent enough time in supermarkets to think we know how to save a few bucks: Buy in bulk whenever possible and buy brands that are on special. Too bad the supermarket chains have quietly changed the rules.

Bulk buying, it turns out, is often more expensive, simply because in the early 1990s supermarket chains figured out that consumers lean toward it, and they've jacked up prices accordingly. "Supermarkets know that consumers believe a two-pound package is cheaper, ounce per ounce, than a one-pound package," says Arun K. Jain, a marketing professor at the State University of New York at Buffalo. "But the reality is, you're often better off buying two one-pound packages." He estimates that almost all supermarkets engage in this practice. We found proof at a store near the SmartMoney offices, where a 12-ounce bottle of Aunt Jemima syrup cost $2.09, while a 24-ounce bottle was $4.65; a quart of Lactaid milk was selling for $1.79, while a half-gallon was $3.85.

2. "Our 'specials' are anything but."
Do you tend to pick up a supermarket circular when you walk into your store, hoping to cash in on the weekly sales? They can be a bad deal. "Shoppers don't bother to compare the price when they have a coupon," says Jain. "So supermarkets use them to unload products that are more expensive than other brands."

Some supermarkets even raise the retail prices on items during weeks in which store coupons will be appearing in newspapers and circulars. "The regular retail prices fluctuate, making the discount seem larger for some sales," says one ad-department employee at a large supermarket chain.

Also, beware of the false in-store "sale environments," complete with a separate cardboard display and handwritten signs displaying the price. "People think it must be a special deal," says Jack Taylor, a professor of retailing at Birmingham-Southern College in Birmingham, Ala. "But in reality, it's the same price as always."

3. "Everybody pays a price for our 'loyalty' program."
More than 50 million Americans use supermarket loyalty cards that entitle them to special in-store discounts. Who foots the bill? Those customers who refuse to join. "The whole point is to give the best shoppers something special, and you have to pay for that out of something," says David Diamond, president of emerging business for Catalina Marketing, the St. Petersburg, Fla., company that handles many supermarket card programs. "It used to be that everybody got Rice Krispies for, say, 79 cents. Now they're available to anyone for 89 cents, but the best shoppers get them for 49 cents."

And if you do join, you'll pay in another way — with your privacy. Diamond says his company sells to manufacturers only data that don't identify individual consumers. But under special circumstances, your shopping history may be used against you.

Consider the case of Robert Rivera, a 62-year-old retired tow-truck operator in Los Angeles who in 1995 slipped on a carton of spilled yogurt in his local supermarket, shattered his kneecap and filed a lawsuit against the store (later dismissed by the judge for lack of evidence). During a discovery session, Rivera claims, a lawyer for the store threatened to air his buying habits. "He said they had information that I buy a lot of alcohol," says Rivera. "I shop at lots of different stores in the chain. There's no way they could have known that unless they used my club card information."

"They know if you drink, have hemorrhoids or practice safe sex," says Los Angeles consumer advocate Tim Duffy. "I tell people, unless you're using the card to cash checks, give them a fake name." Luckily, your supermarket will usually play along. Safeway, for example, allows members to sign up merely as "Safeway Customer."

4. "Our stores might make you sick..."
You'd be horrified to find roaches, rats or other critters in your kitchen, but those same creatures may be running amok in your grocery store. A 2000 New York State Department of Agriculture and Markets report, for example, found rodents, birds or bugs in the aisles of almost 15% of supermarkets. At an Albany, N.Y., Sam's Club, an inspection turned up rodent-gnawed chocolate bars, 500 samples of mice droppings and six dead mice in aisle 13. (A Sam's Club spokesman says the store has "taken extensive steps to correct the problem.")

And while the bugs and rodents present an obvious health hazard (flies can carry E. coli on their legs and bodies), the pesticides that stores employ in defense can be worse. "We've seen people go in and spray pesticides [and] actually contaminate the food," says Joe Corby, director of the Food Safety and Inspection Division of New York's Department of Agriculture and Markets.

How can you tell if your seemingly bugless supermarket is really safe? Good supermarkets employ a food safety manager to ensure the foundation entrances are sealed and food shipments are inspected before they hit the shelves — the best ways to prevent vermin from getting in. One red flag: old, faded stock. A failure to rotate products properly gives insect eggs that have snuck in with grain products time to hatch and create an infestation.

5. "...and if they don't, our employees will."
Six-legged creatures aren't the only cause of harmful bacteria at your supermarket. "Employee practices are probably the No. 1 cause of cross-contamination," says Joseph Reardon, a food compliance supervisor with the North Carolina Department of Agriculture and Consumer Services.

The problem, in part, is the nature of the workforce, which is typically unskilled. But management also shoulders plenty of blame. "The hours budgeted for cleaning are constantly under barrage by management, and it's hurt food safety," says Carl Lafrate, president of ProCheck Food Safety Consultants, a Baldwinsville, N.Y.-based firm that designs food safety programs for grocery chains. Five years ago, "meat departments were cleaned every four hours, but now they've cut that out." Indeed, in a recently published survey of U.S. supermarkets, the FDA found that more than half of deli workers didn't properly wash their hands and that 45% of meat department employees failed to keep surfaces sanitized.

To find out how your store scores, request a copy of its most recent inspection report. In most jurisdictions, inspections are handled by the department of health, consumer affairs or agriculture.

  Page 1 | 2 Next Page

To license this content, click here