$5.58 for a box of Mini Wheats! And that’s just a sampling of the outrageous price gouging recently seen at Raleys. During the past couple months Raleys has silently been jacking up prices throughout the store.
That box of Mini Wheats is more than $2 cheaper at Wal Mart. Put another way, Raleys is charging about 40 PERCENT higher for the same product. Ridiculous.
A couple years ago Raleys started to rapidly lose market share because its prices were too high. Ironically, its prices for cereal boxes were over $5 a box and clearly not in line with the market. So Raleys reduced its prices to be competitive, proclaiming an Every Day Low Price strategy.
“What we’re offering is fair, consistent prices every day,” Raley’s president and chief executive Bill Coyne.
Raley’s promised “permanent” price cuts.
“Permanent” that is, until they assume enough time has passed and no one is watching. Those cereal prices are now back over $5.
Worse, the economy is in the worst recession since the Great Depression.
According to the United States Department of Labor in its January 16, 2009, Economic New Release regarding the Consumer Price Index summary for 2008, grocery store food prices nationwide rose 6.6 percent in 2008. Except at Raley’s, where they are skyrocketing. Do the private owners at Raley’s need to make up for their stock market losses?
A 40 percent markup is simply inexcusable.
The economic and market share reports for companies like Raley’s and Wal Mart should be interesting this year. While Raley’s may try to blame the economy, in reality any problems are their own doing.