What drives local grocery prices?

Question

I've noticed that prices vary from store to store even within certain chains. Walmart or Dillons etc. How often does the price within a local market turn? How does this affect the smaller retailers?

Answer 1

I read a good expose in a local paper a few years back where they showed how in our state alone, a chain store charged significantly different prices for the same products at stores less then 10 miles apart.

The determing factor was not store expenses, but price tolerance- in other worlds the more affluent the area- the more they charged-

Oddly enough this would give the small retailer a better shot at surviving in a richer neighborhood then at a poor one.

Answer 2

No matter who it is it's supply and demand. How much are you willing to pay for a pound of potatoes? Of course there are other factors in play; e.g., would you rather drive 20 miles to a farmers' market or go to the closest store. Would you rather go to a nice sophisticated store or a messy store without the fancy displays? Do you think that a particular store will have better prices, but haven't really investigated?