As a reader of Consumer World and Mouse Print*, you are probably a savvier shopper than most. But did you know that some supermarket chains “zone price?” That means the shelf prices and advertised sale prices at its stores can vary from neighborhood to neighborhood, city to city, or region to region.
While many factors go into pricing decisions by supermarkets like rent and labor costs, the presence or absence of competition nearby is often the key to whether a particular store location has lower prices or not. The more competitive the area, the lower the prices, typically.
One exception, at least in my area just north of Boston, is Aldi. Aldi is a limited assortment supermarket, a fraction of the size of a conventional grocery store. They carry mostly store brands and are priced roughly at about 25% less than conventional supermarket store brands. If you’ve never shopped at Aldi or Lidl (a similar type store), give them a try.
But the Aldi near MrConsumer has significantly higher advertised prices for some items compared to other Aldi stores farther North. This is despite having a Stop & Shop (our largest conventional supermarket) in the same shopping plaza, as well as a Wegmans and two warehouse clubs (BJ’s and Costco) within half a mile, and two deep discount Market Baskets just a bit beyond that.
Here is a portion of this week’s circular for Massachusetts Aldi stores :
But just 24 miles away, in Salem, New Hampshire, those very same items from their Aldi circular are much cheaper:
*MOUSE PRINT:
These New Hampshire prices are half to almost two-thirds less than the Medford, Massachusetts store. While most of the other advertised items are identically priced, these stark price differences can make local shoppers here feel like they are getting ripped off royally.
When MrConsumer raised the zone pricing issue with a top Aldi executive, he offered little hope that anything was about to change here, saying:
“We are always reviewing our prices to ensure we offer our shoppers the lowest prices possible. While ALDI prices do sometimes vary from city to city, we pride ourselves on having the lowest prices in town.”
Well, Aldi, you are not offering us YOUR lowest prices. What do we have to do here in Massachusetts, get a team in the Super Bowl in order to get a good deal on chips?
