Israeli Supermarkets Use Tactics to Increase Customer Spending
Translated & summarized from Mignews by baba
Israeli supermarkets are using tactics like shrinkflation and misleading discounts to increase customer spending without raising sticker prices. A Tel Aviv University study found price increases alongside advertised discounts at Carrefour. Experts recommend comparing unit prices and considering store brands to save money.
The story in 6 lines · by baba
- Israeli supermarkets use shrinkflation and fake discounts to increase customer spending.
- Product sizes are reduced while prices stay the same, increasing unit cost.
- Promotions like "buy one, get one free" encourage unnecessary purchases.
- A study found Carrefour advertised discounts but raised prices in many categories.
- Store layouts place essentials far away and impulse buys near checkouts.
- Experts advise comparing unit prices and considering store brands.
Israeli supermarkets are employing various marketing strategies to boost average customer spending without directly raising prices, according to a report by Channel 9. These tactics include shrinkflation, where product sizes or weights are reduced while prices remain the same, effectively increasing the cost per unit. Customers also face artificially inflated prices for discounts and promotions like "buy one, get one free" offers, which encourage over-purchasing.
A study from Tel Aviv University examined Carrefour's "Israel Basket" program, finding that while prices on 100 advertised items decreased by an average of 35%, prices actually rose in 46 out of 76 categories studied. Store layouts are also designed to increase spending, with essential items like bread and milk placed in distant aisles, premium products at eye level, and impulse buys strategically positioned near checkout counters.
Experts advise shoppers to compare prices based on cost per 100 grams or milliliters, scrutinize the total cost of their basket, and consider purchasing store-brand products to mitigate these effects.
