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Notes to myself, possibly of interest to others.
-- Bill Northlich

Wednesday, September 22, 2010

Traditional discounting methods not working with consumers

WSJ reporting on ConAgra "...promotions that have grown popular in recent years, such as offering 10 items for $10, are becoming less effective in driving sales...The change in shopper behavior hit ConAgra’s consumer-foods segment particularly hard. Despite heavier discounting, which helped drive down prices on average by 1%, the segment sold 3% fewer pounds of food”.

This is what Ben Bernanke is up against – a secular shift in consumer attitudes that is 100% deflationary.

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