NPR looked at prices in a Georgia Walmart in 2022 and compared them to prices at the same Walmart in 2022. They learned that overall, prices have gone up, the practice of “shrinkflation” is more common, and that they exchanged some name brands for more profitable private companies.
The expected outcome of prices rising due to inflation was evident in their research. On average, prices went up 23% at this Walmart. Quaker Old Fashioned Oats went up significantly, with a price increase of 73% and the price of Papermate Mechanical Pencils went up 86%. A few of the other items with a large price increase includes Bounty Paper Towels, Great Value Eggs, and Welch’s Grape Jelly. There were many factors that went into these large increases such as supply chain issues, tariffs, and seasonal purchases.
There were some items that decreased in price. A few of the most significant price decreases were a result of Walmart switching brands. For example, they switched from big-name brands, like the Stanley screwdriver, to private brands. This gives Walmart the ability to advertise lower prices while still making a good profit. Another reason some prices did not go down is because the store can choose to spread a price hike across multiple different items rather than using it on a popular item.
Another concept that NPR captured at this Walmart was “shrinkflation”. This is when the price of a product remains similar to before, but there is a decrease in the amount of product. One example from this project was Dove Soap. In 2019, you could purchase a 10 pack of 4 oz soap bars for $10.88. In 2022, you could purchase an 8 pack of 3.75 oz soap bars for $10.97. This was captured in other products such as Tide Detergent as well.
Seems sneaky to me to not make the more affordable brands available when the majority of people choose Walmart looking for those kinds of brands. It is also not shocking that prices have went up but the rate that they are increasing is shocking to me.
ReplyDeleteI have definitely noticed "shrinkflation" in recent times. It can be frustrating to be paying to same or sometimes more for a product but receive less. We live in a society that has become centered around overall value. Switching from brand names to private companies is another interesting detail. Many companies make great profits because they have developed brand loyalty with customers. I am curious as to how Walmart switching to more private labels has affected other companies profits or customer loyalty.
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