Sometimes when we’re grocery shopping, a deal just seems too good to be true. You know — those two-for-one specials or super-discounted items that make you wonder how the store could possibly be making money. The truth? Sometimes they’re not. Grocery stores will intentionally take a loss on certain products to get you — and other deal-seekers — through the doors.
Alli Powell, CEO and owner of Grocery Getting Girl, explains that these “loss leaders” are items sold below cost to attract shoppers. “You’ll usually see everyday staples like meat, produce, eggs, bread, milk, and soda sold at a loss,” Powell says. “They’re used to draw customers into the store.” Around major holidays or events, stores use loss leaders strategically — like selling turkeys below cost before Thanksgiving. The hope is that you’ll grab that discounted bird and then fill your cart with everything else you need while you’re there.
Even non-staple items can act as loss leaders. Take Costco’s famous hot dog-and-soda combo — where else can you get that deal? If a price seems shockingly low, it’s probably intentional.
Where to Find Loss Leaders
Want to spot these deals? Start with your store’s weekly ad — online or in print — or look for big displays inside. Powell says stores usually position loss leaders in eye-catching spots: “You’ll often find them right at the front or way in the back.” For example, before the Super Bowl, you might see towers of soda cans shaped like a football goalpost up front. That’s no accident — it’s meant to pull you in.
And if you’ve ever trekked through Costco or Sam’s Club just to grab a rotisserie chicken, you’ve experienced another classic loss-leader tactic. They put those must-have items in the back so you walk past plenty of other temptations on the way.
How to Benefit Without Overspending
If you want the savings without all the impulse buys, try sticking to the perimeter of the store. You’ll hit key departments like produce, meat, and dairy — all common loss leader areas — without wandering into the snack aisles.
One section worth checking every time: the bakery. “The bakery is almost always a loss leader,” says Powell. “Bakeries aren’t meant to make a profit — they’re there to round out the shopping experience.” Since flour and labor are pricey, the baked goods you buy are often sold below their real retail value.
One last tip: if you’re shopping online, you might miss the best deals. Some grocery apps raise prices slightly, which cancels out those loss-leader savings. For the biggest bang for your buck, head into the store. Read the full story on Chowhound.
