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Dollar General sign.png Bill Wilson
Forbes said discount outlets like Dollar General and Dollar Tree sell products that cost shoppers more per unit price.

Some grocers are capitalizing on shrinkflation, but one business ‘fights’ against it

Scott & Jon’s is using its “anti-shrinkflation” offerings as a marketing tool

Shrinkflation has gotten U.S. President Joe Biden’s attention, and it’s now starting to become a household word.

During Super Bowl 58, Biden appeared in a commercial on X, formerly known as Twitter, calling on consumer products to stop the practice of shrinkflation.

Shrinkflation is the practice of skimming product while maintaining the same sticker price. A recent report by Sen. Bob Casey (D-Pa.) looks at how the practice has increased.

Common household and grocery items noticeably decreased in size from January 2019 to October 2023 yet unit prices rose more than 20%, the report states. The report also called out products like Gatorade bottles (which have 12% less liquid), Double-Stuffed Oreos (weighs 6% less), and Walmart’s Great Value Ultra Strong paper towel roll (28% fewer sheets). Doritos and Wheat Thins also were mentioned.

So who are the biggest offenders of shrinkflation at the grocery store level? According to Forbes, it’s the dollar stores.

Forbes said discount outlets like Dollar General and Dollar Tree sell products that cost shoppers more per unit price.

Dollar Tree raised its prices to $1.25 in 2021, and last summer some cost as much as $5.

The combination of shrinkflation and the price increases have resulted in tasty profit margins for both Dollar General and Dollar Tree, according to Forbes. Both had profit margins of around 31.5% in 2023, which is 7% higher than Walmart and 10% more than Kroger.

Those who shop at places like Dollar General and Dollar Tree are extra sensitive to price increases, so rather than up the cost the retailers simply decrease the size of products, reports Forbes.

The April 2023 YouGov survey said three in four U.S. consumers are concerned with shrinkflation, but Forbes points out many dollar store shoppers are locked into their go-to place for groceries because there are no other options.

One CPG company recently launched an “anti-shrinkflation” marketing campaign. Scott & Jon’s, which offers healthy seafood meals, announced in February that it is now shipping larger portions of their shrimp bowls while maintaining pricing at the store to uphold its commitment to fight shrinkflation.

In January, stores began receiving shrimp bowls with 20% more product (from 8 ounces to 9.6 ounces), and Scott & Jon’s newly launched salmon bowls also feature 9.6 ounces of seafood.

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