Master The Art Of Spotting Loss Leaders To Save Money At The Grocery Store

Sometimes when we're grocery shopping, we see deals that seem almost too good to be true. Certain two-for-one specials and other uber-discounts can make you wonder how the grocery store is even making a profit on an item. It turns out that sometimes, grocery stores purposely lose money on items to get you — and other customers who want to save some serious cash — through the door. Alli Powell, the CEO and owner of Grocery Getting Girl, spoke exclusively with Chowhound about loss leaders — items sold at a loss to the grocery store to bring customers in and get them shopping. 

Loss leaders are typically grocery staples, according to Powell. She says that she commonly sees must-have grocery items like meat, produce, eggs, bread, milk, and soda sold at a loss. "Loss leaders are used to draw customers into the store," says Powell. Many grocery stores use loss leaders to encourage customers to choose their store before major events and holidays. "For example, a grocery store will sell turkeys below cost before Thanksgiving," Powell says. "The thought behind it is that a person will come in for the discounted turkey and continue to shop more, with the satisfaction of knowing they got a great deal." 

While must-have items are popular loss leaders, they're not the only way grocery stores get savings-savvy customers to shop. "The Costco hot dog-and-soda combo is a great example of this," says Powell. "There is no other place where you can get a hot dog and a soda for that price. If a price seems unusually low, it's probably a loss leader."

If you're ready to save some serious dough on groceries, it's important to know where to look to find loss leaders at the grocery store. You can start by looking for big-time savings in your grocery store's app or paper flyer, or you can head straight to the store and start checking out popular areas for loss leading products. "Loss leaders are usually either at the front or back of the store, with some type of display," says Alli Powell. 

Check out the front of the store for big displays — for example, Powell says, you might see soda stacked to look like a football goalpost near the front of the store just before the Super Bowl. This type of display can work to draw people into the store who weren't necessarily planning on walking in, with the hope that they'll purchase other products once they get a great deal on soda or another item related to a big event. The front of the store isn't the only place you'll find loss leaders, however, "They will also be placed in the back of the store so that the shopper has to go through the entire store until they get to the item they came to buy," says Powell. If you've ever made the trek through Sam's Club or Costco to get to the rotisserie chickens, you've walked the exact path planned by big box store design teams.

Want to check out loss leaders without the temptation that comes with walking through the aisles? Try shopping the perimeter of the grocery store. You'll hit all the vital departments, as well as increase the likelihood of encountering both front- and back-of-store loss leader displays. Alli Powell says that meat and produce are both often loss leaders, as the prices are based on what the grocery store has in stock. Stores often need to sell these items before they go bad, leading to more flexible pricing than shelf-stable items.

One area of the store you definitely won't want to miss if you're trying to benefit from loss leaders: the bakery. Tons of grocery stores offer freshly baked goods, and utilizing the bakery at your local grocery store can save you some serious cash. "Typically the whole bakery section is considered a loss leader," Powell says. "Bakeries are not there to make money, but rather to provide for the shoppers' every need. Flour and labor are both expensive, and the prices the bakery typically sells baked goods for are not what the usual retail cost would be." An important note: Be sure to actually go to the store to get the best deals when it comes to loss leaders. Some grocery store apps that allow you to shop online actually hike up prices, lessening the impact of your savings on loss leader products.