HCal wrote: ↑January 27th, 2022, 8:07 pm
Having lived in urban and suburban California, I think it's more about wealth than convenience. Most people in LA will have several supermarkets within a mile radius, so the traffic isn't really an issue. But they have more money, so they will go to a store of their choice that has what they want to buy, even if it's more expensive and more inconvenient. For example, I know people who will drive right past Ralphs and Vons on their way to shop at Trader Joe's or Whole Foods.
In the rest of California, people are more price conscious, and have fewer options to choose from. However, it may be difficult for a company like Albertsons to have different pricing within a division, so they may be setting SoCal prices according to what makes the most profits in LA rather than in San Bernardino.
Trader Joe's definitely has lower prices than the major grocers in CA. People drive miles to shop Trader Joe's in every market. But Trader Joe's has higher store density in urban areas of CA than most places.
Kroger might have the right thing going on- the Ralphs banner has outrageous CA-type pricing consistent with other full service CA grocery chains. The F4L banner has pricing similar to a Kroger banner elsewhere to the east (Smiths, Frys, etc.).
There is competition in CA that focuses on price but it is debatable how effective they are. Grocery Outlet is present in many markets. Smart & Final is also present in many markets. Wal Mart and Target are present and price strongly. WinCo is a major force where they actually have stores but they have so few I don't think they have much of an impact. 99 Cents Only historically has moved quite a bit of grocery, and the ethnic chains in SoCal are also very effective and price aggressively in certain categories. Generally speaking the CA grocery market strikes me as having a lot more choices for consumers today, than it had 20 years ago... yes it has fewer conventional grocery stores, but it has a lot of other options on every end of the spectrum and every ethnic angle. I think competition is robust and the conventional chains continue to price themselves too high and will continue to lose share. Save Mart and Stater are two conventional chains that may be able to increase share based on what they are doing (Save Mart- easy to increase share when you ran the chain into the ground from 2008-2019... since 2019, store remodel program and more aggressive pricing in the past few years; Stater ongoing improvements to store base and virtually no store closures).
Not even mentioning Aldi you get points deducted!
Where else can you get boneless, skinless chicken for .99 lb. these days as Aldi had Wed/Thurs this week? Nobody has a dozen large eggs as low priced everyday ($1.79 at my local Aldi, some stores are lower). Plus milk & other dairy products are significantly lower than all other major chains on an everyday price basis.
But thank you to Albertsons for giving me a personalized price two months in a row for Lucerne Whole Milk 1 gallon for $2.59 ($4.19 on shelf) - lower than Aldi by 3 cents. Or $1 for their $1.99 in-store fresh bakery bread. And 3 months in a row for a 5 lb. bag of potatoes for $1 ($2.99 on shelf). The last two which I get for free with their $1 off bakery & produce digital coupons.
HCal wrote: ↑January 27th, 2022, 8:07 pm
Having lived in urban and suburban California, I think it's more about wealth than convenience. Most people in LA will have several supermarkets within a mile radius, so the traffic isn't really an issue. But they have more money, so they will go to a store of their choice that has what they want to buy, even if it's more expensive and more inconvenient. For example, I know people who will drive right past Ralphs and Vons on their way to shop at Trader Joe's or Whole Foods.
In the rest of California, people are more price conscious, and have fewer options to choose from. However, it may be difficult for a company like Albertsons to have different pricing within a division, so they may be setting SoCal prices according to what makes the most profits in LA rather than in San Bernardino.
Trader Joe's definitely has lower prices than the major grocers in CA. People drive miles to shop Trader Joe's in every market. But Trader Joe's has higher store density in urban areas of CA than most places.
Kroger might have the right thing going on- the Ralphs banner has outrageous CA-type pricing consistent with other full service CA grocery chains. The F4L banner has pricing similar to a Kroger banner elsewhere to the east (Smiths, Frys, etc.).
There is competition in CA that focuses on price but it is debatable how effective they are. Grocery Outlet is present in many markets. Smart & Final is also present in many markets. Wal Mart and Target are present and price strongly. WinCo is a major force where they actually have stores but they have so few I don't think they have much of an impact. 99 Cents Only historically has moved quite a bit of grocery, and the ethnic chains in SoCal are also very effective and price aggressively in certain categories. Generally speaking the CA grocery market strikes me as having a lot more choices for consumers today, than it had 20 years ago... yes it has fewer conventional grocery stores, but it has a lot of other options on every end of the spectrum and every ethnic angle. I think competition is robust and the conventional chains continue to price themselves too high and will continue to lose share. Save Mart and Stater are two conventional chains that may be able to increase share based on what they are doing (Save Mart- easy to increase share when you ran the chain into the ground from 2008-2019... since 2019, store remodel program and more aggressive pricing in the past few years; Stater ongoing improvements to store base and virtually no store closures).
Not even mentioning Aldi you get points deducted!
Where else can you get boneless, skinless chicken for .99 lb. these days as Aldi had Wed/Thurs this week? Nobody has a dozen large eggs as low priced everyday ($1.79 at my local Aldi, some stores are lower). Plus milk & other dairy products are significantly lower than all other major chains on an everyday price basis.
But thank you to Albertsons for giving me a personalized price two months in a row for Lucerne Whole Milk 1 gallon for $2.59 ($4.19 on shelf) - lower than Aldi by 3 cents. Or $1 for their $1.99 in-store fresh bakery bread. And 3 months in a row for a 5 lb. bag of potatoes for $1 ($2.99 on shelf). The last two which I get for free with their $1 off bakery & produce digital coupons.
Aldi’s egg pricing is $2.49 per dozen in Orange County. Walmart and Ralphs are matching this price while Albertsons is at $3.69. Target is the price leader at $1.59, but not a single store has had them in stock for quite awhile.
My personalized milk coupon has been $3.19 for the second consecutive month (we buy it weekly). My personalized 5 lb potatoes coupon swelled from $1.38 last week to $2.84 this week. I’m not sure how you’re getting the $1 off dairy / produce coupons - I was told these are for new and dormant accounts only, so consider yourself lucky.
HCal wrote: ↑January 26th, 2022, 11:24 pmInflation is defined as an increase in the prices of goods and services, and is usually measured through the consumer price index, which incorporates the prices of things normally bought by consumers. An increase in labor costs may cause an increase in prices of goods and services, but it doesn't directly affect inflation.
Yes, but that’s not how retailers define it. Grab an annual report — store labor is buried in COGS (while managerial labor is in G&A). All costs associated with warehousing, trucking, etc. are also included in COGS. So when Albertsons says it’s costs are going up by X, yes it includes labor. (Unless it is being specific).
Where else can you get boneless, skinless chicken for .99 lb. these days as Aldi had Wed/Thurs this week? Nobody has a dozen large eggs as low priced everyday ($1.79 at my local Aldi, some stores are lower). Plus milk & other dairy products are significantly lower than all other major chains on an everyday price basis.
True, I should acknowledge Aldi given its store count in SoCal is approaching 100 stores at this point...
I wonder who they are taking customers from.
I no longer get any $1 off departmental coupons from Safeway app, it doesn't matter what region I am in anymore. Also they seem to have ended the Saturday free item program the past couple weeks. Safeway is lucky to see $10 a week from me the past couple months due to lousy promotions and terrible everyday pricing. I am getting much better deals everywhere else including Raleys and Save Mart. And in the case of Raleys and Save Mart these are walk in deals since those two stores do not tie any pricing to a loyalty card.
Bagels wrote: ↑February 5th, 2022, 7:23 pm
Yes, but that’s not how retailers define it. Grab an annual report — store labor is buried in COGS (while managerial labor is in G&A). All costs associated with warehousing, trucking, etc. are also included in COGS. So when Albertsons says it’s costs are going up by X, yes it includes labor. (Unless it is being specific).
COGS should never include any sort of labor, warehouse or trucking, unless the retailer owns the manufacturing plant. It is strictly defined as the cost of acquiring or producing the goods.
Bagels wrote: ↑February 5th, 2022, 7:23 pm
Yes, but that’s not how retailers define it. Grab an annual report — store labor is buried in COGS (while managerial labor is in G&A). All costs associated with warehousing, trucking, etc. are also included in COGS. So when Albertsons says it’s costs are going up by X, yes it includes labor. (Unless it is being specific).
COGS should never include any sort of labor, warehouse or trucking, unless the retailer owns the manufacturing plant. It is strictly defined as the cost of acquiring or producing the goods.
In financial reporting, COGS includes all costs associated directly with selling, which includes warehousing, trucking and labor. You can review Albertsons and Krogers annual report to verify this if you’d like. (I’m a nearly 20 year CPA who has prepared and reviewed an infinite number of financial statements ).
In financial reporting, COGS includes all costs associated directly with selling, which includes warehousing, trucking and labor. You can review Albertsons and Krogers annual report to verify this if you’d like. (I’m a nearly 20 year CPA who has prepared and reviewed an infinite number of financial statements ).
I do believe this varies by industry to some degree. How it is done in retail is not necessarily how it is done in, for instance, construction. Since construction technically has no "COGS" since it isn't selling explicit goods.
).
