Kroger, one of the largest supermarket chains in the…
““Kroger, one of the largest supermarket chains in the United States, use high–low pricing. For example, during the run-up to 2011 Thanksgiving, Kroger sold turkey cheaper than other retailers, at $0.98/pound. By providing the lowest price on the most compared product they got people to shop at their stores, and made their profit on potatoes, yams and other holiday items that were priced higher than at other retailers.””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
Kroger deliberately set a very low price on a high‑visibility item to attract shoppers, then earned profit on higher‑priced complementary goods.
In simple terms: Low price on a popular product draws customers who then buy other items at normal margins.
Key Takeaway
Use loss‑leader pricing to increase overall sales.
Themes
marketing
pricing
consumer behavior
retail strategy
Mood
strategic
analytical
Type
business
case study
When to use this quote
- holiday grocery shopping
- store traffic increase
- inventory turnover
Key Concepts
loss leader
price anchoring
cross‑selling
Questions to Reflect On
- How can you balance attraction and profitability?
- What other products could serve as effective loss leaders?
A Different Perspective
If the loss‑leader item is too cheap, it may erode brand perception or profit margins.