by Tim Barlow
WHAT’S HAPPENING
- From frozen meats to breakfast cereal, cost-conscious shoppers are bidding on heavily discounted items at grocery auctions, with average savings of between 50-90% (ABCnews.com 4.2.09).
- Sprouting up at auction halls across the country, the gatherings put leftover and slightly damaged groceries on the auction block. Arriving from supermarkets, distribution centers and restaurant suppliers, the goods might otherwise have found their way into salvage stores or food banks (MSNBC.com 3.25.09).
- While the items may be dinged up or close to expiration, everything is hawked as perfectly edible, and guaranteed with a full refund.
WHAT THIS MEANS TO BUSINESS
- The combination of the recession and rising food costs has consumers opening up to new and often creative ways of saving on basic staples like food.
- The auction format (naming the price, bidding) gives some control back to the consumer — an emotional driver often missing from turbulent times.
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