Deal shopping

I visited with Steve Lutz of the Perishables Group earlier today about consumer behavior in a scenario of rising prices. He pointed out that fresh produce isn't necessarily in a position of strength; consumers already tend to think fresh fruit and vegetable prices are on the high side. In that context, this story from The Houston Chronicle speaks to how retailers are positioning themselves for the value choice:

It's vital for grocers to "show customers they're on their side," said Kit Yarrow, professor of business and psychology at Golden Gate University in San Francisco. "Consumers want to feel like they can trust that their grocer is doing everything they can to help them."

Among retailers, grocery stores have some of the most loyal customers. But now that fuel costs are taking a bigger chunk than ever out of people's income — at the pump and in their light bills — those bonds are in jeopardy of breaking.

"Consumers hate to switch grocery stores and tend to be very loyal, but all that's up for grabs right now, and every smart grocer knows that," Yarrow said.