By Andrea K. Walker , andrea.walker@baltsun.com|August 24, 2008
Molly Kushner leads a group of people through the aisles of Whole Foods Market in Mount Washington, trying to persuade them that they can shop frugally at the popular - but often pricey - natural foods store.
She stops at rows of locally grown yellow squash, ears of corn and eggplant. Local food is cheaper because it travels a shorter distance to the store, she tells the group, part of the "Shopping on a Shoe String" classes the grocer recently launched.
After pointing out the company's private label products as inexpensive options, she bypasses the case of fresh salmon and red snapper, pausing at a frozen food display with less expensive tuna and scallops.
"Don't neglect this part of the fish department if you're on a budget," says Kushner, a Whole Foods marketing specialist and community liaison.
Higher food prices and the slowing economy are forcing consumers to stretch their grocery dollars - heightening competition among supermarkets and leading even chic spots such as Whole Foods to trumpet their bargains. Grocers report that shoppers are using more coupons, buying less expensive cuts of meat and increasingly seeking out store brands as they try to lower their food bills.
Meanwhile, supermarkets are offering discounts for repeat customers, triple-coupon promotions and free milk to attract consumers who have seen food and beverage prices spike 5.8 percent from a year ago.
Although the intensely competitive supermarket industry has long offered weekly discounts, analysts expect the promotions to escalate as stores work to build customer loyalty even as they're forced to raise prices.
"The question consumers are asking is who is going to give me a way to moderate my food costs," said Harry Belzer, a vice president at consumer research firm NPD Group. "I think we're going to see a whole bunch of promotions that we haven't seen before."
Josette Sykes, 57, began noticing the higher prices about a year ago. These days, she buys fewer items, including eggs and bread, and chooses smaller containers for products such as dishwashing liquid. The retired corrections officer from Baltimore, who has noticed more grocers competing for her dollars lately, also scours the newspaper for discounts and uses more coupons than ever. "I clip my heart out," Sykes said while piling groceries from Safeway into her minivan. "I stretch every cent I can."
Although they can't stop the rising prices, consumers are finding other ways to cut food costs.
