Friday, 25 July 2008

New shopping era.

Change to the way we shop is on the way. A giant American corporation will soon open a shopping warehouse in Melbourne - with the promise of an outlet in Sydney and other capitals to follow.

We are about to be introduced to the concept of bulk buying. The bigger the purchase of any item dictates a lower price and this can result in unbelievable prices when the reseller operates on a fraction of the usual margin.

We will need to adjust to travelling to these super warehouses. They are so big that only one or two would be justified in a city the size of Sydney, but they will be worth the time and effort because of the savings they will offer.

The existing grocery stores of Coles and Woolworths have started conditioning customers to start thinking of bigger volume purchases. Have you noticed the latest trend in their liquor outlets to offer two bottle of spirits - or two cases of beer - at a special price ?

Grocery specials now are offered in multiples - six of a single item at a very low price. Obviously the numbers necessary to achieve a big saving will increase steadily as the invasion from across the Pacific draws closer.

This move will tend to tie in with other events. Petrol is reaching ridiculous levels and many will willingly forgo a weekly shopping in favour of buying in bulk to satisfy a whole months requirements.

It also means that the future of Coles and Woolworths is less than clear. Not everyone will be able to buy in bulk, hence the conventional stores are likely to adopt a split approach to prices.

The person of limited means will still be able to make single item purchases - but the price will be much higher than that offered for a greater quantity of the same goods.

Unfortunately this will further widen the divide between the urban poor and the more affluent in our society.

It underscores that old adage that " progress comes at a price " !

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