Renee’s Rule™: Cost Cutting Can Reduce Revenues

April 29, 2018

In the photo below are plastic bags used in the produce departments at WINCO (employee-owned, discount grocery chain) and Fred Meyer (Kroger-owned).  The larger bag is from WINCO; the smaller is from Fred Meyer.  Which grocer do you think sells the most produce?

Although I have no statistics to back this up, it seems likely that Fred Meyer sells less because its bags–the bags a customer reaches for when buying produce–are smaller and to me also more flimsy.  In fairness, Fred Meyer does have some larger plastic bags available, but they are not easily seen (lower; in a corner of an aisle.)

It seems likely that some financial person at Kroger decided to reduce costs by buying smaller bags.  If you were in charge, what would you do about these bags?

WINCO AND KROGER Produce bags 20180427