Budget busters: The latest supermarket products affected by shrinkflation
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Feeling like your grocery bills are getting heavier while your shopping bags are getting lighter? You're not alone.
It seems like we're caught in the crosshairs of a sneaky trend called 'shrinkflation' – the supermarket's secret tactic to shrink the size of products while keeping the prices intact, and sometimes even jacking them up!
If you're one of the many shoppers trying to navigate a tight budget, this kind of cost-cutting feels like a low blow. It's like a wrestling match with your hard-earned cash, and the supermarkets are playing dirty.
Unfortunately, according to the grocery price comparison app Frugl, shrinkflation has already taken its toll on several products this year. Take Masterfoods garlic granules, for example. They downsized from 50g to 45g while keeping the price at $3.15.
And let's not forget about Ritz original crackers, which went from 300g to 227g but still cost $3.50 — a classic case of less for the same price.
Even our beloved treats haven't been spared. Lindt maxi carrots now come at a whopping $17 for 354g. But last year, it was $16.50, and it offered about 20g more. It's a bitter pill to swallow for chocolate lovers.
But it's not just indulgences that have been affected. Woolworths Macro organic tomato chutney also saw a reduction of 25g, going from 275g to 250g, while the price went up to $5. Woolworths justified the downsizing, citing higher wholesale costs.
To know the products affected by shrinkflation last year, check out our article here.
It's no wonder supermarket shoppers are raising their eyebrows at this situation. However, manufacturers are still finding shrinkflation to be a popular strategy.
Researchers conducted a series of experiments at a Brisbane supermarket, where they cleverly manipulated the shelf tickets of various products to create the illusion of change, and what they discovered was intriguing.
When both the size and cost of a product were decreased, with the size reduction being more significant, it resulted in the highest number of units sold. Additionally, the classic shrinkflation approach—reducing the size while keeping the price the same—yielded better sales outcomes compared to simply raising the price.
According to Professor Gary Mortimer from the Queensland University of Technology (QUT), this phenomenon boils down to how we perceive losses. 'We don't want to pay more for the same, but we're willing to pay the same for a little bit less,' he explained.
When it comes to calculating the Consumer Price Index (CPI), which serves as a measure of inflation, the Australian Bureau of Statistics (ABS) takes shrinkflation into account. Shrinkflation falls under the ABS's 'quality change' analysis, which examines price variations in a basket of goods and services.
As an illustration, the ABS explains that if the volume of a drink decreased from 750ml to 675ml while the price remained at $3, this reduction in volume would be considered a price increase of 10 per cent, and it would be factored into the CPI calculation.
By including shrinkflation in the analysis, the ABS aims to capture the impact of size reductions on overall inflation rates. It recognises that even though the price may stay the same, consumers are essentially paying more per unit or volume due to the decreased product size.
By considering quality changes such as shrinkflation, the ABS provides a comprehensive assessment of price fluctuations, ensuring that the CPI accurately reflects the evolving cost of goods and services for consumers.
If you're feeling the pinch of shrinkflation, Professor Mortimer recommends taking a closer look at your weekly shopping habits. His suggestion is to pay attention to the unit price of items to get a clear understanding of the actual cost of the product.
Unit pricing is a mandatory labelling system under the Competition and Consumer Act 2010. It helps consumers comprehend the cost of a product by indicating the price per unit of measurement, such as per litre, gram, or kilogram.
By using the unit price, you can compare prices of similar products, even if they differ in size, brand, or packaging. According to Mortimer and his team's previous research, using this approach can save shoppers up to $1,700 annually, making it a valuable tactic to consider.
Furthermore, unit pricing can be beneficial when shopping online since it allows you to compare prices without physically inspecting the product. Unit prices are calculated to the nearest dollar and cent, making it easy to compare and find the best grocery deals.
If you need to get more familiar with unit pricing, our article here can provide you with additional information.
Keeping a close eye on unit prices can help you make more informed purchasing decisions and get the best value for your money. As you embark on your shopping journey this week, may luck be on your side!
And speaking of shopping tips and tricks, we'd love to hear from you! If you have any additional strategies or insights to share with fellow shoppers, feel free to drop them in the comments section below.
Sharing our knowledge and experiences can help us all become savvier shoppers in the ever-changing landscape of the grocery world. Happy shopping!
It seems like we're caught in the crosshairs of a sneaky trend called 'shrinkflation' – the supermarket's secret tactic to shrink the size of products while keeping the prices intact, and sometimes even jacking them up!
If you're one of the many shoppers trying to navigate a tight budget, this kind of cost-cutting feels like a low blow. It's like a wrestling match with your hard-earned cash, and the supermarkets are playing dirty.
'Shrinkflation' refers to paying the same or more for a product despite getting less of it. Credit: Pexels/Anna Shvets.
Unfortunately, according to the grocery price comparison app Frugl, shrinkflation has already taken its toll on several products this year. Take Masterfoods garlic granules, for example. They downsized from 50g to 45g while keeping the price at $3.15.
And let's not forget about Ritz original crackers, which went from 300g to 227g but still cost $3.50 — a classic case of less for the same price.
Even our beloved treats haven't been spared. Lindt maxi carrots now come at a whopping $17 for 354g. But last year, it was $16.50, and it offered about 20g more. It's a bitter pill to swallow for chocolate lovers.
But it's not just indulgences that have been affected. Woolworths Macro organic tomato chutney also saw a reduction of 25g, going from 275g to 250g, while the price went up to $5. Woolworths justified the downsizing, citing higher wholesale costs.
To know the products affected by shrinkflation last year, check out our article here.
It's no wonder supermarket shoppers are raising their eyebrows at this situation. However, manufacturers are still finding shrinkflation to be a popular strategy.
Researchers conducted a series of experiments at a Brisbane supermarket, where they cleverly manipulated the shelf tickets of various products to create the illusion of change, and what they discovered was intriguing.
When both the size and cost of a product were decreased, with the size reduction being more significant, it resulted in the highest number of units sold. Additionally, the classic shrinkflation approach—reducing the size while keeping the price the same—yielded better sales outcomes compared to simply raising the price.
According to Professor Gary Mortimer from the Queensland University of Technology (QUT), this phenomenon boils down to how we perceive losses. 'We don't want to pay more for the same, but we're willing to pay the same for a little bit less,' he explained.
When it comes to calculating the Consumer Price Index (CPI), which serves as a measure of inflation, the Australian Bureau of Statistics (ABS) takes shrinkflation into account. Shrinkflation falls under the ABS's 'quality change' analysis, which examines price variations in a basket of goods and services.
As an illustration, the ABS explains that if the volume of a drink decreased from 750ml to 675ml while the price remained at $3, this reduction in volume would be considered a price increase of 10 per cent, and it would be factored into the CPI calculation.
By including shrinkflation in the analysis, the ABS aims to capture the impact of size reductions on overall inflation rates. It recognises that even though the price may stay the same, consumers are essentially paying more per unit or volume due to the decreased product size.
By considering quality changes such as shrinkflation, the ABS provides a comprehensive assessment of price fluctuations, ensuring that the CPI accurately reflects the evolving cost of goods and services for consumers.
If you're feeling the pinch of shrinkflation, Professor Mortimer recommends taking a closer look at your weekly shopping habits. His suggestion is to pay attention to the unit price of items to get a clear understanding of the actual cost of the product.
Unit pricing is a mandatory labelling system under the Competition and Consumer Act 2010. It helps consumers comprehend the cost of a product by indicating the price per unit of measurement, such as per litre, gram, or kilogram.
By using the unit price, you can compare prices of similar products, even if they differ in size, brand, or packaging. According to Mortimer and his team's previous research, using this approach can save shoppers up to $1,700 annually, making it a valuable tactic to consider.
Furthermore, unit pricing can be beneficial when shopping online since it allows you to compare prices without physically inspecting the product. Unit prices are calculated to the nearest dollar and cent, making it easy to compare and find the best grocery deals.
If you need to get more familiar with unit pricing, our article here can provide you with additional information.
Consumers should look at the unit price to make more informed decisions and save money on grocery shopping. Credit: Unsplash/Charles Gao.
Keeping a close eye on unit prices can help you make more informed purchasing decisions and get the best value for your money. As you embark on your shopping journey this week, may luck be on your side!
And speaking of shopping tips and tricks, we'd love to hear from you! If you have any additional strategies or insights to share with fellow shoppers, feel free to drop them in the comments section below.
Sharing our knowledge and experiences can help us all become savvier shoppers in the ever-changing landscape of the grocery world. Happy shopping!
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the print is smaller too to fit on the smaller packaging . Do they think we are all morons
