Chains have dropped all discounts on items in many cases. Used to be roughly 20% of total items had some cents off tags nationally. And “we are offering a reduced special brochure at this time” by the handouts in front.
Supposed to “help” us have availability of food chain problem items. And a nice profit boost on the side.
When many categories of items in stores have been totally empty after buyouts by the consumers for pasts couple of months, especially at the start, how much extra profit did the chains make?
Anyone know?
This was by design. During the late 1970's the federal government engaged in price controls on food and gasoline. After President Reagan came into office and got the economy out of the malaise produced by Jimmy Carter, the price controls were lifted.
We noticed that prices became elevated, but groceries and manufacturers started to produce copious coupons. My father had been in the grocery business during the 1950's. (He was the smartest person I have ever known, personally.) His assessment was that the people in the food chain were protecting themselves against future attempts at price controls. Rather than raising prices, which would be illegal, the merchants would simply quit providing coupons and leave the prices at original list.