It’s reasonable for grocery shoppers to expect the price they see listed on a store shelf is the price they will pay for goods at the register.
For a time, that wasn’t the case at Avanza Supermarkets, which instead had an exotic pricing policy in which customers were charged an extra 10 percent at the checkout.
Facing an impending trial involving the policy, the national grocery chain admitted liability and agreed to pay six metro-area plaintiffs $700 each. We’re glad to see the case resolved, and we hope it sends a message to grocers who may be considering moving into under-served, minority neighborhoods.
Those who live in these areas deserve clarity and fairness in pricing, just like shoppers in other areas.
Let us be clear: The lack of full-service grocery stores in poor neighborhoods is a national problem, and we hope supermarket chains find a way to make the numbers work so they find it profitable to locate in those areas. But that calculation cannot include the kind of pricing structure Avanza had in place, which the supermarket has since discontinued.
For a time, the supermarket advertised its supposed low prices and its strange policy by asserting: “A great way to save — Plus 10 percent at the register.”
Consumers who filed a lawsuit against Avanza contended the pricing structure was deceptive. At least one said she thought she would save an additional 10 percent at the register when in fact she was charged an additional 10 percent.
The company previously had defended the strategy, saying it was well understood by its customers. Avanza’s parent company, Nash Finch, discontinued the practice last year. The company released a statement Tuesday saying it agreed to the judgment in the legal action rather than incur the cost of a trial.
“We remain committed to providing our shoppers the best overall value for their shopping dollar at Avanza and apologize if any of our customers did not understand the Shelf Plus 10 program, which we discontinued in 2009,” said Alec C. Covington, president and CEO of Nash Finch.
It is vitally important for residents of neighborhoods such as those Avanza serves in Colorado to have access to stores where fresh fruits, vegetables, dairy and meat are sold. Avanza, which has stores in Denver, Aurora and Greeley, offers products designed to meet the tastes and needs of Hispanic shoppers, according to its annual report.
Even in Colorado, where the obesity rate is below the national average, there still are significantly higher obesity rates among black and Hispanic people. The availability of fresh foods in minority neighborhoods is key to addressing this problem, so that families can more easily cook nutritious meals. And they shouldn’t need to endure unusual pricing structures to figure out what it will cost them.
