1+1 Promotions Disappearing in the US... "Consumers Seek Near-Expiration Products and Increase Frozen Storage"

Due to Inflation, US Grocery Store Discounts Decrease
"Will Continue to Decline Until Supply Chain Issues Are Resolved"

As high inflation continues, discount events are decreasing in U.S. supermarkets. The photo shows employees packing customers' items into bags at a store in Washington DC, USA, on the 28th of last month (local time).
[Image source=EPA Yonhap News]

[Asia Economy Reporter Hwang Sumi] As high inflation continues, foreign media reports that discount events at U.S. supermarkets are decreasing.

On the 2nd (local time), The Wall Street Journal (WSJ) reported, citing market research firm Information Resources, that 20.6% of groceries were sold at discounted prices in the third quarter of this year. This is about 5% lower compared to 25.7% in 2019, before the spread of COVID-19. WSJ also reported that the discount rate decreased for all groceries except meat.

This is interpreted as an effect of ongoing supply chain disruptions in the U.S., which is experiencing the highest inflation in 40 years. Food manufacturers, who had been supporting part of the promotional costs for retailers, have reduced or completely stopped their support due to supply chain difficulties, leading to fewer discount events.

Accordingly, WSJ reported that it has become difficult to find promotions such as buy-one-get-one-free (1+1) events or discounts where 2L sodas are sold for less than one dollar, at 99 cents, in recent U.S. grocery stores.

As high inflation continues, discount events are decreasing in U.S. supermarkets. The photo shows a man organizing items at a grocery store in Mount Pleasant, Washington DC, on August 19 (local time).
[Image source=Reuters Yonhap News]

Regarding this, Costa Drosos, general manager of a grocery store in Chicago, told WSJ, "We have not held discount events on yogurt and milk for the past five months," expressing that discount events on key products that attract customers are almost impossible. He also said that a soup manufacturer recently offered a 10% discount, but they declined because the company required purchasing 1,200 units per flavor of soup.

The situation is similar at B&R Store, a grocery chain in the U.S. Midwest. They have been holding weekly special discounts on chicken, but recently the chicken processor Sanderson Farms cut off support, making it difficult to continue the promotions.

As a result, the variety of groceries consumers can choose from has significantly decreased. With fewer large-scale discount events, consumers are turning their attention to some meat products nearing their expiration dates or discounted items, WSJ said. John Frey, who lives in Kingsport, Tennessee, said, "I am freezing more food than before and looking for ways to cook cheaply."

Meanwhile, WSJ predicted that discount events will continue to decrease until supply issues between food manufacturers and retailers are resolved.