ATLANTA — Companies are increasingly resorting to ‘shrinkflation,’ where product sizes are reduced while prices remain the same, to cope with rising production costs.
Channel 2’s Linda Stouffer is sharing what experts have to say about shrinkflation, which is a tactic used by some manufacturers to maintain pricing amidst inflation and rising production costs.
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This involves reducing the quantity or size of products without lowering the price, affecting everyday items such as groceries.
Edgar Dworsky from Consumer World has been tracking shrinkflation for years and said that inflation is the primary driver behind this trend.
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Nancy Crombie, a shopper, observed that products are ‘down in volume, up in price,’ highlighting the impact of shrinkflation on consumers.
Ziploc sandwich bags have decreased from 280 to 270 per box, yet the price remains at $12.99. Similarly, Honey Nut Cheerios have reduced from 29.4 ounces to 27.2 ounces, with Walmart listing both sizes at $5.97.
S.C. Johnson, the maker of Ziploc, responded to inquiries about pricing, saying in a statement that adjustments in counts were made to maintain accessible pricing amidst rising costs.
They also noted that they have added 10% more bags per box for most products at no additional cost.
A survey conducted by the National Association for Business Economics in mid-October found that many businesses are trying to avoid raising costs for consumers by employing strategies like shrinkflation, slowing down hiring, lowering profit margins, and absorbing higher production costs.
As companies continue to grapple with inflation, experts say shrinkflation remains a prevalent strategy, affecting consumer purchasing power and prompting shoppers to seek alternatives to stretch their budgets.
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