Here is an interesting story from the Consurmerist about the effects of the Great Recession on American grocery shopping habits:
Used to be, back in the days of yore, shoppers looking for a deal in the grocery store could go for a generic store brand item instead of the more expensive name brands. But lately the gap between those two options has been narrowing, to the point where store brands sometimes even cost more than their previously pricier counterparts.So, it will probably just be a matter of time before some company starts marketing a GENERIC generic line of grocery products. No wonder long time beloved brands like Hostess and Kraft are reeling these days.
Many consumers turned to the tactic of store brands during the recession, to the point that now, a lot of us actually prefer our generic items for the basics at the grocery store and have become loyal to those brands instead.
According to the Wall Street Journal (via Time), stores have caught on and are raising the prices of their private-label goods, to the tune of 5.3% on nonperishables and a whopping 12% for perishables. Name brand prices aren't rising at the same pace, at only 1.9% and 8% on those respective categories, but still cost on average about 29% more than generic brands.
Stores have caught on and updated their boring, bland brand labels and created more exciting, attractive packaging for their products. And they're not afraid to price those items above their name brand counterparts. For example, Target's Archer Farms line of snacks and drinks are easily recognizable and loved by customers for their pretty logos and familiar branding.
Bonus: This song is so Low Budget that it's still on vinyl!