When dairy goes on sale
Relatively steady grocery store prices keep consumers coming back for milk and other dairy products. Grocers, then, must find another way to manage their inventories and margins to align with the changing tides of the prices they pay for these items. The answer, says Mike Brown of the Kroger Company, is sales.
“We rarely change list price. We try to balance with promotions,” explained Brown, Kroger’s dairy supply chain director, on the March 24
Hoard’s Dairyman DairyLivestream. Dairy provided two clear examples of this strategy in the wild price swings of 2020.
On the butter side, prices were the weakest they’d been in a long time. That allowed Brown’s stores to bring in more product, and then they ran promotions to move it.
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