Source: NYT > Business (paywall)
Supermarkets are deploying surgical price cuts on high-visibility staples to signal value while maintaining margin through private label upsells and promotional complexity. The tactic surfaces a shift in grocery competition: chains now battle over price perception in specific categories rather than basket-level savings, since consumers actively comparison-shop by item. This forces competition on perception rather than actual affordability, which keeps overall consumer spending elevated despite the headline discounting.