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Paycheck timing is nothing new in the retail business, and it's used by virtually all of the big retailers to roll out promotions, product refreshes, new lines,

Paycheck timing is nothing new in the retail business, and it's used by virtually all of the big retailers to roll out promotions, product refreshes, new lines, etc. Traditionally speaking, paycheck timing was used by retailers catering to low-income segments -- especially those on food stamps, and those who buy groceries on extremely predictable cycles (by necessity). But what's interesting, not to mention troubling, is that this trend is proliferating up the socioeconomic ladder. It's been going on for awhile now, dating back to before the 2007/8 crash, though certainly made a lot worse ever since that downturn.

rgbrenner 13y ago
walmart talks about this occasionally.. here's an article on the "food stamp rush" at walmart: http://www.businessweek.com/magazine/food-stamp-rush-hour-12222011.html http://www.businessweek.com/magazine/food-stamp-rush-hour-12...
r00fus 13y ago
Can you give me an example other than say, post Apr 15th sales/promotions to get tax rebate money?
- jonnathanson 13y ago
  Retailers segment their customers' trips to the store in much the same way a tech company segments use cases. So-called "stock-up trips," typically conducted after the first payday of each month, are when customers go to the stores to -- as the name implies -- stock up on groceries and supplies for the coming two weeks. "Fill-in" trips are ad hoc trips to grab specific items or meet needs that have emerged since the stock-up trip. A second stock-up trip typically happens around the second payday of the month. And so forth. Shopping behavior -- particularly shopping behavior among segments of the population living paycheck to paycheck -- follows very predictable patterns like these, often by necessity. Now, let's put this into practice. I'm managing a regional grocery chain. Let's say it's Kroger in the Midwest. I want to win customers' share of wallet on the payday stock-up trip, so they'll go to my store instead of a competitor's (let's call that competitor Meijer). I'll time my sale accordingly on key items (often these are "price indicator" items that signal price superiority over other competitors in the area). Meijer will be timing its sale the same way, and so a lot of game theory and competitive intel will come into play here. But this is why grocery items and household necessities are cheaper at these big chains two weeks out of the month.

rgbrenner 13y ago

walmart talks about this occasionally.. here's an article on the "food stamp rush" at walmart: http://www.businessweek.com/magazine/food-stamp-rush-hour-12222011.html http://www.businessweek.com/magazine/food-stamp-rush-hour-12...

r00fus 13y ago

Can you give me an example other than say, post Apr 15th sales/promotions to get tax rebate money?

jonnathanson 13y ago
Retailers segment their customers' trips to the store in much the same way a tech company segments use cases. So-called "stock-up trips," typically conducted after the first payday of each month, are when customers go to the stores to -- as the name implies -- stock up on groceries and supplies for the coming two weeks. "Fill-in" trips are ad hoc trips to grab specific items or meet needs that have emerged since the stock-up trip. A second stock-up trip typically happens around the second payday of the month. And so forth. Shopping behavior -- particularly shopping behavior among segments of the population living paycheck to paycheck -- follows very predictable patterns like these, often by necessity. Now, let's put this into practice. I'm managing a regional grocery chain. Let's say it's Kroger in the Midwest. I want to win customers' share of wallet on the payday stock-up trip, so they'll go to my store instead of a competitor's (let's call that competitor Meijer). I'll time my sale accordingly on key items (often these are "price indicator" items that signal price superiority over other competitors in the area). Meijer will be timing its sale the same way, and so a lot of game theory and competitive intel will come into play here. But this is why grocery items and household necessities are cheaper at these big chains two weeks out of the month.