Price data from three popular stores was collected on a randomly selected grocery list created in 2004. The contents included staple items: 2% milk, bread, peanut butter, margarine, cheese spread, baby food, cereal, graham crackers, ketchup, orange juice, flour, green beans, and instant tea. Prices were collected on store brands and national brand items. The same items were used to collect prices in 2011. The price information collected confirms two tips are still true when it comes to keeping your grocery costs under control:
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Store brands are less expensive. In 2004 the national brands purchased cost 36% to 47% more than the store brands. In 2011 national brands were still more expensive, but the differences had narrowed in two stores charging only 19% to 29% more for the national brands.
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It’s cheaper to shop locally. The price of the national brand grocery sacks were $40.72, $36.14, and $34.97. The cost of operating a car is $.55 @ mile. A consumer would use up the savings generated by shopping at the lowest price location if they drove an additional 10 miles to arrive at the stores front door.
Here are some other discoveries when the groceries from 2004 are compared to 2011:
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Baby food leads the way with the greatest per item price increase followed by dairy and orange juice. Consumers can substitute naturally soft foods, bananas or applesauce; or create their own baby foods by processing small amounts of cooked vegetables and fruits. Dairy savings can come from switching to 1% or skim milk products.
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Size matters. Peanut butter and cereal were two items that are being marketed at smaller weights.
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Two stores increased their store brand prices 34% and 54% resulting in a narrowing of the savings generated from selecting the store brand.
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Instant tea and bread are two items that have remained virtually the same price between 2004 and 2011.
“Grocery shopping is changing in other way”, states Joyce Lash, Family Finance Program Specialist for ISU Extension & Outreach, “the three stores included in this comparison now maintain websites that feature their sale items”. Manufacturer sites and coupon sites are sources of additional discounts. To learn more grocery savings tips visit the Spend Smart, Eat Smart website.
10/27/2011