A recent study by Morgan Stanley sheds some light on the prices consumers pay for groceries at several major store chains.
The study compared the cost of 100 commonly-purchased food items at different stores, focusing on organic/natural food sellers:
- The Kroger Co KR 1.61%,
- Whole Foods Market, Inc. WFM 0.41%,
- The Fresh Market Inc TFM 1.85% and
- Sprouts Farmers Market Inc SFM 0.59%.
Overall Prices
Compared to average conventional supermarket pricing, Kroger’s low prices were the best of the group. The study found that the common items cost 3 percent less at Kroger than at the average conventional supermarket. Items cost 19 percent more than average at Whole Foods, but customers of The Fresh Market paid the largest cost premium: 25 percent above average.
Kroger performed best of the four stores in each food category studied, with produce being the lone exception. Sprouts displayed the lowest produce prices, 21 percent below average.
“Organic Premium”
The study found that organic products command an average cost premium of 47 percent when compared to non-organic products within the same store. The organic premium was highest at Sprouts, where customers pay 57 percent more for organic products than non-organic products. The lowest organic premium was found at The Fresh Market (33 percent).
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