Beware of Store Closing Sales

Recently, the Great Atlantic and Pacific Tea Company (a.k.a., A&P) declared bankruptcy and the closing of its remaining stores. Outside the retail outlet, "Store Closing" banners entice people that never even shopped there before. The implication is clear; this is a great opportunity to save on many common household goods or is it? Naturally like many people, I thought I would save but the prices on the shelves told a very different story.

What many people do not realize is that few retail outlets normally sell their products at the full M.S.R.P. (manufacturer's suggested retail price). If they did not offer some form of discount, they would be out of business. Sure A&P is on its way out but they survived since 1859! Not many businesses have had that much longevity so they must have been doing something right before ShopRite, Whole Foods, Costco and others overtook them. Product discounts vary greatly by product type. Bananas and other produce may be offered at a nice discount because they are perishable but products that have a long shelf life may be listed for significantly less. Ever notice two for one sales? If the item is perishable, it pays to check the expiration date as it is not uncommon to find such products sold near their expiration. Even if the product will likely not go bad for several days after the expiration, if it is unlikely you will use that product before it expires, it is probably not such a good deal. Likewise, if the store normally offers yogurt at 30% off, you may actually find yourself paying more for the same item in a store liquidation sale as few people will even realize the discount was more before the sale! Ten percent is not much of a discount and if they increase the list price as well, you may find yourself really paying through the nose!

While A&P of course did provide some higher discounts at its store closing event, the average discount saved was actually less than their membership card previously offered from my experience. Somehow the decimal moved so that instead of saving several dollars on many items, now it appears the average was more in pennies. Worse yet, they did not even total how much you saved because they know it is minuscule. At OfficeSalesUSA.com, we offer some products as high as 70% off on just our normal pricing. The average discount may be far less but it is extremely unusual for anything to be sold at the full M.S.R.P. let alone above this. Yes buyer beware as the price you pay for not understanding how the retail world works may leave you short in cash just when you thought you were being smart taking advantage of a store closing event.