Is the biscuits and other items nearer to use by date that's why Coles and Woolies discount.. special them?
Are Loss Leader Items at Coles and Woolworths Are Close to Expiry Date?
ilove on 29/01/2020 - 10:22
Last edited 29/01/2020 - 12:25 by 1 other user
Last edited 29/01/2020 - 12:25 by 1 other user
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Not necessarily. Coles and Woolies would discount popular items, thereby attracting customers to the store who (hopefully) do their entire shopping there.
not necessarily coles themselves, sometimes they pressure the manufactor to lower prices or run a promotion.
Oh I'm sorry - I didn't mean for my response to be exhaustive and be the only reason supermarkets discount. It was just one of the ways that came to mind. I'm sure there are many more.
No. Loss leaders are generally part funded by suppliers, with other co-op monies and rebates being collected to offset the gp loss.
Nah, the "big name" 50% specials at Colesworth are deals done with big suppliers and are just "normal" stock.
I don't know the actual economics, so the numbers are illustrative, but the supermarket will buy something for $5 and then sell for $10. They then do a one week 50% off deal so obviously they then sell for $5. They will then push a rebate back onto the supplier for any stock sold during the promotion of (say) $1.25.
So in normal times, supplier gets $5, supermarket sells for $10.
On a 50% off, supplier gets $3.75, supermarket sells for $5.
As noted, numbers are illustrative only and whether the burden for the discount gets split down the middle or is biased on way or the other, I don't know, but it works on some variation of the above.
The ones close to expiry are, usually, the perishables with the mark down stickers. Normal shelf stuff is just to get you in the door.
Nah. They just rip off the supplier
Not necessarily, sometimes the supplier will dictate the amount of volume required to purchase at the price. So it can work in favour of both supplier and retailer.
Also it can be that the seller dictates to the wholesaler, “ if you don’t give me this bloody cheap, I will not buy other things from you”. The wholesaler gets grabbed by the balls and sells that item at a lass however recoups the loss from other volume sales
Yep. It's probably more common that coles and Woolies dictate to suppliers, but sometimes it would be worth it for the guaranteed volume in sales.
I know Amazon does. Drink cans and bottles I bought from them have 4-8 months expiry