Wednesday 25 March 2009

Thrifty US shoppers trade grocery aisles for grocery auctions

The growing popularity of grocery auctions — which sell leftover or damaged goods from supermarkets, distribution centers and food service suppliers — comes at a time when people are stretching their grocery budgets by using more coupons, buying inferior cuts of meat, and choosing store brands over national brands.
The increased interest has fueled growth in the auctions, which can be found in at least nine states from Oklahoma to New York.
Apart from the moral issues re making food more available to those in need, 'past-sellby date' grocery auctions indicate a need for branded suppliers to somehow 're-enter' the distribution process, possibly via a shortening brand code-life.
If not, suppliers run the risk of damage to brand equity caused by the growing disparities between advertising-induced expectation of the brand and the consumer's experience upon opening the box…

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