Europe Россия Внешние малые острова США Китай Объединённые Арабские Эмираты Корея Индия

The dirty trick supermarkets use to sneakily jack up prices - and it's getting out of hand

2 months ago 10

You may have noticed the size of the items in your grocery basket getting smaller - whether it is a box of cereal shrinking or a packet of potato chips getting lighter.

But a new report has laid bare the true extent of 'shrinkflation' in the US, and just how much Americans are being shortchanged.

Shrinkflation is when products shrink in size or quantity while the price remains the same or even increases. 

Of almost 100 everyday products analyzed by LendingTree, it found a third had shrunk in the last five years. 

'People are already frustrated that things cost more,' said Matt Schulz, LendingTree chief credit analyst. 'Shrinkflation just adds insult to injury. It all adds up to a lot of Americans feeling squeezed every month to afford the basic things they can't do without.'

Of almost 100 everyday products analyzed by LendingTree, it found a third had shrunk in the last five years

Household paper products, which includes toilet paper and paper towels, saw the biggest change in size over the time period.

Some 60 percent of household paper products have reduced their sheet count, the study found. 

12 mega rolls of Angel Soft toilet paper decreased from 429 to 320 sheets a roll. 

This is the equivalent of a 25.4 percent reduction in size - the most of any product. 

While the cost of 12 Angel Soft mega rolls has dipped from $9.97 to $8.44, its price per 100 count increased from 19 cents to 22 cents, meaning consumers are paying 13.5 percent more per 100 sheets. 

Another Angel Soft product, 18 mega rolls, was next with the biggest change in size - shrinking by 24.7 percent. 

Beyond Angel Soft, Bounty Select-A-Size triple roll paper towels saw the next biggest decrease in size, shrinking 18.2 percent from 165 sheets a roll to 135.

It has also jumped in price from $19.88 to $22.18 over the time period.

After household paper products, breakfast items were the most likely to shrink, LendingTree found. 

Family-size Frosted Flakes shrank the most of the cereals analyzed. It decreased by 9.6 percent - falling from 24 ounces to 21.7 ounces.

Next, family-size Raisin Bran dropped 7.9 percent from 24 ounces to 22.1. It also saw the biggest increase in price per ounce - rising from 15 cents to 23 cents.

LendingTree researchers compared Walmart prices and product sizes from 2019 and 2020 to August and September 2024 to find out which items had changed the most.

As well as the majority shrinking in size, it also found that only two items had fallen in price over the time period. 

Looking at candy, Party-size Reese's miniatures and party-pack Rolo chewy caramels decreased the most in size, both falling 11 percent from 40 ounces to 35.6. 

Folger's classic toast ground coffee shrunk by 16 percent, while also rising from $9.96 to $14.87. 

In terms of snacks, a 36-count of FunPops freeze pops downsized by 20 percent - the most of any product in the category.   

Meanwhile, a party-sized bag of Lay's sour cream and onion potato chips shrunk by 15.3 percent, while increasing in price from $3.98 to $5.44.    

A party-size bag of Cheetos decreased in size by 14.3 percent - alongside a whopping price increase of 135.3 percent per ounce. 

The majority of Americans have noticed or experienced shrinkflation, the report found. 

A new report has laid bare the true extent of 'shrinkflation' in the US, and just how much Americans are being shortchanged

The majority of Americans have noticed or experienced shrinkflation, LendingTree found

The report comes as two Democratic lawmakers accused Coca Cola, PepsiCo and General Mills of profiteering off consumers through shrinkflation (Pictured: Senator Elizabeth Warren)

The top ten in USA Today's best supermarkets. Walmart, Costco and Kroger may be three of the biggest in the US, but none of them made the list

Some 71 percent have noticed at least one incident in the last year, while 57 percent have experienced multiple incidents. 

Schulz, from LendingTree, said businesses prefer shrinking products over raising prices, as they know that customers do not like it when this happens.

'Shrinkflation is a sneaky little way around that,' he said. 

'Rather than bumping up the price of something, businesses make the product smaller while keeping the price the same. 

'If done smartly, customers may not even notice. However, the problem is that when they do, it leaves the customer with a bad taste in their mouth because it feels so deceptive.'

The report comes as two Democratic lawmakers accused Coca Cola, PepsiCo and General Mills of profiteering off consumers through shrinkflation. 

Senator Elizabeth Warren and Representative Madeleine Dean wrote to the CEOs of the companies accusing them of subtly decreasing the size of cereals and sodas sold in stores.

'Unfortunately, this price gouging is a widespread problem, with corporate profits driving over half of inflation,' they said.

Meanwhile, a report last month rated America's ten favorite supermarkets (see graphic above).

Walmart, Costco and Kroger may be three of the biggest in the US, but none of them made the list.

Fan favorites Trader Joe's and Aldi - both budget stores with a limited range focusing on cheaper, own-label items - and upmarket Wegmans were in the the top ten compiled by USA Today. 

But none take the top spot, which goes to Hy-Vee. 

Founded in 1930 in Iowa, the employee-owned chain has just under 300 stores mostly in the Midwest and the South.

Read Entire Article