MARTIN SLOANE | Supermarket Shopper Milk case is the cash cow for supermarkets

Dear Martin: Can you explain how a corner 7-Eleven can sell a half-gallon of nonfat milk for 50 cents less than the two big supermarkets in this area? L. Boisvert, Long Beach, Calif.
Dear L. Boisvert: Milk is a cash cow for supermarkets. Profit margins on milk range from 12 to 15 percent compared to just 1 or 2 percent on other food items. According to Information Resources, Inc., over the last two years supermarkets had the highest prices for milk, averaging $2.98 a gallon. Membership club stores had the lowest prices, averaging $2.12. To bring shoppers into 7-Eleven more frequently, the convenience store's management is pricing milk more competitively. As a result of a major decline in cigarette sales, the chain needs to attract more customers.
Since 1995, Wal-Mart has capitalized on an aggressive milk-pricing strategy. Many industry experts consider it one of the reasons for Wal-Mart's success in food retailing. Its stores now account for 14.4 percent of all retail milk sales.
As a result of this competition in the milk case, supermarkets are slowly losing their grip on milk sales. According to IRI, supermarket milk sales slipped from 78.6 to 77.4 percent from June 2002 to June 2003. This may not sound like much, but research shows that customers who leave the supermarket with milk buy more than three times as much as shoppers who do not include it in their purchases. Supermarkets who do not want to lose this business to other types of retailers should rethink milk pricing.
Dear Martin: The reader who wondered why supermarkets still accept checks did not realize that, while credit cards may be faster, some shoppers do not want to add groceries to their card balances. A real downside to this increasingly electronic-based world is that people are losing patience with others. I found it extremely sad to see a bar code pasted to the side of a cash register with a sign saying: "Please be patient -- I have social anxiety." Margie Sekerak, Gallitzin, Pa.
Dear Margie: Thank you for writing. I think self-scanning is an example of how we have lost some sensitivity because of the electronic world. Years ago, when cashiers were ringing up items manually, there was a greater connection with the customer. Customers had more appreciation for cashiers who rang up the correct prices. Scanning has its benefits, but "connecting" with the customer is not one of them. As a result, some patience and sensitivity have been lost.
Dear Martin: When a manufacturer's mail-in offer requires a complete register tape, is the company trying to use the information on the register tape to learn what we purchase? An e-mail from an anonymous reader
Dear Reader: No, the register tapes are only used to prove you have purchased the product. The tapes come in so many formats and are so jumbled it would extremely difficult and far too costly to extract consumer information.
Dear Martin: I'm having trouble with a rebate and have never seen this problem mentioned in your column. The rebate was for Frank's RedHot Chile 'n Lime sauce. The fulfillment center sent my rebate request back because my receipt only printed hot sauce beside the price, not Frank's Chile 'n Lime hot sauce. They want a receipt with the brand next to the price. How can I be responsible for the way my local Giant Eagle prints its receipts? Thank you for your help. B. Gilbert
Dear B. Gilbert: Manufacturers who ask for register tapes know there is no uniformity in the information printed on the receipts. Some supermarkets print out the brand name while others do not. Consequently, if the item you circle on the tape bears any resemblance to the rebate product, it is usually accepted. Certainly, "hot sauce" should have been accepted. I called Reckitt Benckiser, maker of Frank's RedHot, and I was told there had been a mistake in rejecting rebate requests, including yours. Their consumer affairs department wants to correct the error and you can call the toll-free number: (800) 888-0192.
This week's Smart Shopper Award goes to Lucy Rhodes of Carver, Mass.: "My Victory Market had Progresso soups, regularly $2.19, on sale for 99-cents. I had two Progresso coupons, each good for a dollar off the purchase of two cans. Four cans cost me just 49-cents a can. I consider that quite a savings, don't you?"
Lucy, I definitely do. You saved 77 percent on your Progresso purchase! This is what The Great Grocery Game is all about. You will receive a copy of my book, The Guide to Coupons & amp; Refunds. Your Smart Shopping Adventure will be posted on my column support site: www.martinsloane.com.
Have you sent in your nomination of a supermarket associate or your favorite store for a Golden Shopping Cart Award? Don't wait any longer. Send it to me in care of The Vindicator.
XSend questions and comments to Martin Sloane in care of The Vindicator. The volume of mail precludes individual replies to every letter, but Martin Sloane will respond to letters of general interest in the column.
United Feature Syndicate