Are groceries really more expensive here than other places? (Knoxville: low income, appointed)

[queenladybug817]

The comment about milk in the other thread got me curious. In similar size areas, are are grocery bills really higher or is it perception? I honestly don't know the answer, as I never really compared carefully. I also can't compare my grocery costs between living in NY vs here, as the composition of the household changed dramatically during the move. (From 5 kids and 2 adults most of the time to 2 adults most of the time).


As for the milk, I can't completely compare because the sale ad for this upcoming week for Kroger's isn't available for the Tri-Cities locations yet. However, I did a spot check of various Kroger stores around places I know that DID have the ad available.

This is the sale price of Kroger brand gallons with Kroger card, but the difference is very interesting:
Louisville - $2.58
Knoxville - $3.19
Clarksville - $2.99
Hopkinsville, KY (just a few miles north of Clarksville) $3.29
Bowling Green, KY - $3.29
Sevierville - $3.39
Nashville - $2.99
Lexington, KY - $2.89

I'd love to know the reasoning behind that.

[Ted Bear]

It is one of life's mysteries.

Yes, groceries are WAY more expensive in the tri cities area, and no one seems to be able to explain it.

The demographic suggests that the average income is lower, real estate is lower, taxes are lower (except for the sales tax), fuel is lower, and the food is in many cases grown (more) locally than, say, Florida to New York. Labor costs are lower, as are electricity costs.

The only 'guess' I have made is that lack of population density makes the area sort of a 'niche' market and you can't sell 'volume' at low margins, and therefore must sell at a higher price to cover your fixed costs...but that seems like a pretty lame explanation. Plenty of other 'small' markets don't have the kind of high food prices we have locally. The stores in the area are generally not well appointed, and the Krogers off of Roan, for instance, hasn't been renovated in lord only knows how long.

I have been told that 'we are waiting for the truck to come in' or 'there was no XYZ on the truck this week" as an explanation of why they don't have inventory of a particular product. That alone wouldn't seem to explain high costs, and therefore high prices. In fact, if they aren't stocking inventory, costs theoretically might be lower.

If someone has an explanation, I am all ears as well.

OP.....price some simple pasta if you want to be shocked......

[queenladybug817]

Yeah, the Kroger off Roan is usually where I go. Not all pretty and sparkly, but the employees are really nice and helpful, or at least they always are to me. It's one of the reasons I go back there rather than other stores. Service to me will often trump things others expect and I admit that puts me in a minority.

I'd love to see both the Kroger's here on the level of a Fry's store we loved living out in AZ. (Fry's is owned by Kroger.) It wasn't a Trader Joe's or anything, but it was an awesome store for the area we were in. Fantastic deli and produce, meats always fresh and good quality and the prices were great too. None of the other mid-range grocery stores I've seen have been as nice anywhere we've lived. Just hated going there on the first of the month, as it was both military payday AND payday for many of the senior "snowbirds" living there. Yikes!

[BirdieBelle]

Also, TN charges sales tax on food, which most northerners are not used to.

Sorry to butt in.

[kamoshika]

IMO, no or at least not significantly more expensive. I didn't notice much of a difference in grocery prices when I moved back here from Atlanta in '02. And in the past year I've shopped in grocery stores in probably a dozen different towns & cities in TN, VA, NC & SC, but I haven't seen a substantial difference in prices anywhere. I don't, however, buy meat, fish, or a lot of specialty/unusual food items, so maybe some of those things run a bit higher here.

While I'm no fan of Walmart, I believe their ubiquity & success as a grocer have played a role in keeping grocery prices down here & elsewhere. FWIW, I just compared the Kingsport Kroger ad to the one for Gainesville, GA, and the prices were identical for pretty much every item listed in both ads.

[Serious Conversation]

Keep in mind that TN is not a heavy ag state, so comparing it to Iowa or even Louisville (which is much closer to farm land) probably isn't the best.

Still, I've found certain items to be a lot more. I bought 32 oz bottle of Powerade Zero at HyVee in Des Moines for $.87 each - at Ingles, they are $1.27 last I checked. There were numerous healthy choice dinners I'd take to work for under $2 in Des Moines, but these are often $3 or more in the Tri-cities even after you take into account your discount card. I found Wal-Mart brand milk for $2.72 here in MA. Lunch meat is about the same. I too have shopped grocery stores in five states or so this year, and I think the Tri-Cities is way, way higher on some things and at par to slightly above on most items. Once you combine the need for discount card (Kroger, ingles, and food city all have one - and I haven't seen the need for cards other places like here) and then the sales tax on food, it can get way out of line, especially considering low incomes.

[DaveinMtAiry]

I took a trip from Maryland a year and a half ago. I was really shocked ot find the prices in the grocery stores were pretty much the same as up here in MD. And that did not even take into account the taxes.

[queenladybug817]

Originally Posted by Emigrations

Keep in mind that TN is not a heavy ag state, so comparing it to Iowa or even Louisville (which is much closer to farm land) probably isn't the best.

Still, I've found certain items to be a lot more. I bought 32 oz bottle of Powerade Zero at HyVee in Des Moines for $.87 each - at Ingles, they are $1.27 last I checked. There were numerous healthy choice dinners I'd take to work for under $2 in Des Moines, but these are often $3 or more in the Tri-cities even after you take into account your discount card. I found Wal-Mart brand milk for $2.72 here in MA. Lunch meat is about the same. I too have shopped grocery stores in five states or so this year, and I think the Tri-Cities is way, way higher on some things and at par to slightly above on most items. Once you combine the need for discount card (Kroger, ingles, and food city all have one - and I haven't seen the need for cards other places like here) and then the sales tax on food, it can get way out of line, especially considering low incomes.

Other than fresh produce, I'm not sure how the location near agriculture factors. Frozen dinners and Powerade aren't dependent on farms being near them.

I wonder if it has something to do with regions of the store chains? I ran across something on Kroger's website that mentioned the Knoxville area was part of their Eastern region, while west of here was grouped more with the midwest. If they base pricing on regions and competitors in those regions, that could explain why Maryland and Eastern TN have similar pricing. We are lumped in with the more affluent region? It's something to consider. I don't know how much local economics factors in overall in their business models.

[queenladybug817]

For the milk comparison. The JC Kroger ad for the week showed up this morning.

Updated list:
Johnson City - $3.29
Louisville - $2.58
Knoxville - $3.19
Clarksville - $2.99
Hopkinsville, KY (just a few miles north of Clarksville) $3.29
Bowling Green, KY - $3.29
Sevierville - $3.39
Nashville - $2.99
Lexington, KY - $2.89

JC isn't the highest, but it is close. Interesting how the smallest towns on the list have the highest price.

[Serious Conversation]

I don't know enough about how the final prices are reached to make an informed comment. I think the lack of competition is part of it. Once you go out of Kingsport/JC/Bristol, about all you have are Food City and Walmart - with many smaller communities having only a Food City. Prices at the Food City in Lebanon, VA where I worked were higher than the Tri-Cities proper.

We had more grocery stores when I was a kid fifteen to twenty years ago than now. There was a local store called Oakwood near the Food City by the mall. Winn Dixie was near the mall and in west Kingsport. There was an A&P in the GBC building years ago. There were Food Lions in Kingsport (may still be one somewhere). There were White's where Pricele$$ is. Ingles was in Colonial Heights then as well.

There are at least three Food Cities in Kingsport (new Eastman road, downtown, Colonial Heights) and I can't think of any other dedicated grocery store within the city proper off the top of my head. This can't be helping matters.

This is slightly out of date, but only explains taxes, and not the initial prices.

Democrats say Tennessee consumers pay among nation's highest taxes on groceries | PolitiFact Tennessee