How Big Box Stores Can Cost You More

Big Box Store

It’s A Box. It’s Big.
#It’sRainingInTheNorthwestQuadrant

It’s undeniable that mega stores like Walmart, Target, and Sam’s Club have lower prices.  They can pressure suppliers to bring prices down from a volume perspective, then they pass those cost savings onto the customer.  Simple economics. 

But these stores that take up 3 city blocks and have their own internal weather systems, are they actually costing you more money in other ways?

A friend of mine told me recently that she goes grocery shopping at Target, and that they have awesome prices.

Probably true, but here’s what may happen when you go to Target and you only need groceries.

You walk in and the first thing you see is the end cap display just past the entrance with the super duper sale on blenders, or vacuum cleaners.  It’s there for a reason.

So you stop and take a peek.

“Wow, that’s cheap.  Never seen a Vitamix that low… hmmmm..”

You deftly avoid that initial visual assault and push on, bolting right to the food even though you still have to pass toiletries and school supplies to get there.  Look straight ahead, just keeeeeep focused….

So you’re cruising up and down the food aisles getting things done and things seem to be on task.  Winning.  Then you think…

“Well, being I’m here and all, let me just run over to housewares to see if they have any candles on sale”

Never mind that you have plenty candles at home already.  You love candles, it’s your thing.  Plus you haven’t been sleeping well lately and you need a pick me up.  Something to boost your spirits.

So since you’re already in Target and they carry lots of candles you go and take a peek.  Harmless right?  On the way to the candles you have to pass the stationary section, the window blinds and curtains, and the lamps.

“Ooo, that’s a cool lamp..  nahh… too much…  Hmm, do we need any curtains?”

You press on, still trying to resist.  The last thing you pass to get to the candles is the patio section.  It’s late March and the first weekend of beautiful spring temperatures is predicted for the upcoming weekend. There’s a kitschy looking set of outdoor drink ware on sale, complete with colorful plastic martini glasses and a trendy looking pitcher to serve up mojitos.

It’s only $10.00!!

Tempted By The Fruit Of Another
#NameThatBand

Your mind quickly flashes to a sun drenched scene of your family and friends on the patio, the first glorious weekend of patio partying.  The scene in your head takes it’s cues from the endless TV and magazine ads you’ve seen over the years of attractive models doing the same, laughing and imbibing, holding up their shiny and colorful plastic martini glasses full of goodness.  It paints a dream like picture, you want to be in that picture.

Voila! –  the drink ware set is in your cart.  Ten bucks gone.  It happens that fast.  Damn imagination.  Damn attractive models. 

And you still have yet to get to the candles.

But should you have even been in a store that has an entire patio section in the first place?  Or lamps?  Or curtains?  You mainly needed pasta sauce and meatballs for tomorrow night’s meal plan.  What just happened?

 

We’re From The Internet & We’re Here To Help

I do probably 90% of my non-grocery shopping online these days.  And for groceries I’m increasingly turning to Amazon Prime Pantry for non-spoilable items.  I do go to Target or maybe another big box store once every few months, but generally I shop online.

Why so much online? 

Regarding that last item, Amazon is working that issue with the Amazon Prime Now experiments and 2 hour delivery.  I tried it once when I needed laundry detergent that day.  Not only was the detergent cheaper but sure enough, they were at my door an hour and a half later.

I do enjoy using my bike to go to a store, usually the grocery store or just CVS since I get fresh air and exercise and I can throw in some hill repeats on the way.  But mostly, I shop online.

 

Turn Off Temptation

Temptation.

If you’re the type of person who succumbs to temptation and you choose to go to brick and mortar stores often, then you should try to choose a store that’s as singular as possible based on what you need.  By singular I mean they should sell as few “classes” of products as possible.

In other words, if you need groceries go to the grocery store.

A traditional grocery store like Safeway sells groceries, but also some other things such as toiletries, some housewares, and of course pharmaceuticals. 

But they don’t have blue jeans, mini blinds, video game systems, flat screen TVs, and GPS watches. 

When you only need groceries, picking Safeway over Target minimizes the possibility that shiny squirrels will kidnap you and take you to the shoe department.  Because you like shoes.  Those damn squirrels know that you like shoes.  They’re going to get you.  Safeway has no shoe department.  You can win a battle with the squirrels at Safeway.

Will you pay more for groceries at Safeway?  Maybe.  But again, this advice is personality dependent based on your situation.  If your grocery bill at Target is $7 less overall than Safeway, you’ll kill that savings if you also walk out with a new coffee bean grinder you didn’t need.

I do most of my in store grocery shopping at Trader Joe’s or Aldi.  Everything they sell is pretty much edible.  No aisle crammed with duct tape, spatulas, and corning ware.  They keep a very small toiletries section with sunscreen, toilet paper and some other basics.  Besides that, it’s food.

If you are not the type of person who is easily distracted, tempted, or kidnapped by shiny squirrels then big box stores are probably your best bet.  Or, if you like to do all of your shopping at one time – meaning get groceries, some clothes for the kids, and and new external hard drive, then stores like Costco will probably save you money.

 

Possession Is Nine Tenths Of The Law

These Are Not Groceries

Here’s another problem with brick and mortar stores.  Research of shopping behaviors shows that a person is far more likely to buy something once they’ve touched it

Picking up an object in a store starts a subliminal process of hypothetical ownership.  You start feel the objects weight, gauge the quality.  Your mind is already picturing what it would be like to own it. 

When you shop online you can’t touch it.  Sure, you’re taking more of a leap of faith as the to the quality of the product, but that’s what reviews are for.

If you’re trying to rein in your spending, not being around shiny new things that you can touch with “buy me I’m on sale!” signs on them is one of the best ways.  And nobody has more shiny new things in one confined, attention-getting place than the gargantuan big box stores.  You’ll save a lot of money being ignorant of all those seemingly amazing bargains by just not going through the front door.

Your Turn readers – do you shop at big box stores?  Do you ever get kidnapped by the attention deficit squirrel posse when you do?

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Dave @ Accidental FIRE

I reached financial independence and semi-retired in my mid-40's through hard work, smart living, and investing. This blog chronicles my journey and explores many aspects of personal finance including the psychological and behavioral factors that drive our habits.

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54 Responses

  1. goldfinch says:

    My hubby and I call Costco the hundred dollar store for this reason. I can get in and out with just the items on the list but if he’s with me, it’s $100+. Shiny squirrels indeed.

  2. Your commentary is hilarious! I only really shop for groceries at grocery stores. I wish we had a Aldis nearby! It’s fricken LA! We have everything else! Anyway, I do know the lure of Target though. Whenever I DO go in there for something like toothpaste or something random, they take control over my brain the second I walk through the doors and find myself browsing all the other departments. BTW, when are Vitamix’s that low. I need to know! lol! I don’t have a Costco membership, but my friend buys me $10 gift cards and I use them to go in like twice a year for paper towels and toilet paper. If you go over the amount you just pay the difference in cash. Brilliant system!

    • Accidental FIRE says:

      I just got my first Aldi 2 years ago and have been increasingly using it. They do seem to have a lot more sugary junk foods than Trader Joe’s, so I have to watch out for that. But they also have some great stuff and the prices can be ridiculously low sometimes.

      I’ll have to ask my friends to give up the love on the Costco gift cards – they’re holding back!

  3. I think I’m the only person who goes to Target and walks out with nothing. I got a $25 gift card for Christmas and still haven’t spent it, since every time I go I catch myself distracted by shiny squirrels. As soon as I recognize I’m doing that I just leave. I can bike to the store again at a later time/date. I’m also looking for a very specific thing for our kitchen renovation and waiting for it to go on clearance…we’ll see if that ever happens. I should probably just re-gift the gift card at this point 🙂

  4. Susan @ FI Ideas says:

    Good point about touching an object. I have to remember that one when I do one of my rare Walmart runs. I probably should buy more household items on Amazon. I just logged into Amazon, and did you know, there is a Kindle book available. I almost bought it, but I refrained 🙂

    Squirrels & Other Shiny Objects Kindle Edition
    by Michael Milmoe (Author)
    4.0 out of 5 stars 2 customer reviews

    • Accidental FIRE says:

      Ha, love it Susan. A book about ADD. Wonder if he has any big-box store stopping stories in that book!

  5. i’m allergic to the suburbs. i haven’t been to a mall/walmart/costco in about 25 years. i did go to a target last year for a power strip and some rat poison (which they didn’t have). the experience was horrible and i couldn’t wait to get the hell out of there. i try not to get in the car and agree that any additional exposure time on the road isn’t ideal. i’m lucky mrs. smidlap shops for most of the groceries.

    • Accidental FIRE says:

      We’re soul brothers Freddy, I hate the modern sprawl-type ‘burbs too. I’ve never even set foot in a Costco in my entire life! Although I have been to Target quite a lot since there’s one close to me but every year I go less and less. I’m mostly an internet shopper now – bring on drone delivery!!

  6. You bring up a great point and I think that happens to a lot of people at the big box stores. I distinctly remember my dad (jokingly) complaining that my mom would always come back with a bunch more things from the store than they intended!

    I’m also intrigued by the online version of shopping for groceries. While I’ve never done it before, I could imagine there would be just as much temptation in the form of the ads on the page? Like you just bought this, this goes great with that and other users bought this! And when purchasing is just a click away, I feel like that could also be easy to overspend on stuff you normally wouldn’t get. Not sure if that’s true or not but would love to hear your thoughts on that.

    • Accidental FIRE says:

      Great point about online shopping. If you look at a typical Amazon product page, I’d say there’s a lot fewer extra items presented than what you can visually see at a big box store standing pretty much anywhere. Additionally, on an Amazon page for say, bike tires, you’re mostly presented with other bike tire options. So that’s good for comparison shopping. But if you’re in REI in the bike section looking at tires, in that same aisle is helmets, clothes, lights, etc etc. And you can easily see the kayaks hanging (oohh kayaks!) and other shiny things.

      Point well taken though about the ease of click-to-buy. For me, not being able to touch the objects creates much of the hesitancy to buy. But for others results might vary. Great comment!

  7. Doc G says:

    I hate shopping. Despise it. Yet my wife and kids all love it. They love to go to target or better yet Marshal’s or TJ Maxx. I spend all sorts of time in these places staring at my phone. Oh well…family time!

    • Accidental FIRE says:

      Let me guess, that’s when you write your awesome posts and do the Twitter?

      At least those stores are cheap. Better than having a hankering for Needles Markup (aka Neiman Marcus) 🙂

  8. I have actually wondered what people buy when they “impulse shop” at Amazon. For me, I just buy stuff from the list of needs I have. But then again, Amazon is just for household supplies. I buy clothes, etc. elsewhere online.

    95% of what I buy is through the Internet, because I live in a city and there’s so many people in my way in the stores. I do think that the online barrier helps stave off overspending. I think most of it has to do with your spending personality, too.

    • Accidental FIRE says:

      I think some people get the jimi-finger on the mouse and just go all clicky-nuts on Amazon. I agree with you, I feel less “impulsy” online. It is very personality based – a buddy of mine has a problem with Ebay after a few beers. He ends up buying crazy stuff!

  9. I think I’m working on getting the shopping bug out of my system. I wasn’t ever a crazy shopper, but if I were in the mall I’d stop by stores just to browse, which is a slippery slope. I don’t really have any desire to do that, plus malls are crowded and that’s not my idea of a good time!

    But at least for me I think it’s easier to overshop online, especially if the store offers free returns. I can buy a ton and justify it saying I’ll return most or all of it back. And since it’s online it’s harder to get a feel for just how much stuff I’m buying (and the cost doesn’t even matter because it won’t end up being that large number when all is said and done!). Whereas if I were in a store I’d be physically limited by the number of things I could carry—and would probably try things on so that I didn’t have to buy multiple sizes to see what actually fit. Obviously that’s a horrible, wasteful practice, which is why I’ve now gone a few months without opening up my particular choice of offending site once!

    • Accidental FIRE says:

      Wow so you just proved Luxe’s point, it is really dependent on personality. Really interesting, you’re the opposite of us! I hear you on the crowds though, the older I get the more I hate them. I’m worried that I’m headed toward a life of a hermit under a bridge….

  10. As a small business owner of 15 years the online shopping is something I have been very mindful of and only done when an item isn’t available locally. I feel supporting the small independant retailers is the fabric of our communities and how we ensure a healthy engaged community as a whole.

    That being said when going in those big box stores and as you did, get in and get out LOL
    The grocery stores was always, kit the outer perimeter and get what you need and avoid the aisles.

    Cheers

    • Accidental FIRE says:

      I like that approach Chris and I do try to support small businesses when possible, but I also try to balance between online and using my car. I hate the latter, so the best solution of all is biking to a small business, and I strive for that if possible. For example we actually have 2 or 3 independent coffee shops left here kinda close to where I live. I loathe Starbucks and everything they stand for and have only given them money maybe 10 times in my life. I’ll go out of my way to go to the local coffee shops here.

      Absolutely true on the outer perimeter for grocery, except my Trader Joe’s mixes everything up the way they organize their store. They just do it differently.

      • For the driving comment, the term is location arbitrage in the FI world is it not? I picked a place that I can pretty much walk and buy everything I wanted if I had to. Then for the extras I try to combine trips to knock off the list. Now if your local businesses have an online store and now many of the local delivery services running too that would be a huge win win.

        • Accidental FIRE says:

          When I bought my house in 2001 it was waaay out of my price range to be in an area like that. I could afford to do it now, but love my house and it would not be wise to buy a $900k house now that I’m FI. It’s expensive here in the DC area.

          As more gig-economy delivery services pop up like Uber-Eats and Postmates I’m sure it’ll happen. I’ve even considered being a bike deliverer for one of those companies as a side hustle. Ride and get paid!

  11. Cee Elless says:

    How timely! I had basically this conversation with a friend two days ago:

    Friend: What did you do this afternoon?
    Me: Oh, went grocery shopping at Target.
    Friend: Ooooooooh! What did you get?
    Me: Uh, groceries…
    Friend: I mean what ELSE did you get?
    Me: Um, dental floss…

    Between you, me, and the fence post, I did touch a pair of earrings along the way….and they felt cheap and gross. Ew.

  12. Costco was our kryptonite before we started tracking our spending to the penny. They always have such great deals on things we don’t need, but we used to give in regularly on something that looked fun / useful / etc. Now we go in and stick to our list 99% of the time, and Costco is finally a money saving trip instead of a money sucking one.

  13. Operation Husband Rescue says:

    That damn Sam’s Club gets me every time. Plus, I usually go with my husband who is a “OOOH LOOK AT THIS” and throw it in the cart type of person. He busts my budget every time we go to the store together.
    I am intrigued by the thought of buying all non-food and non-spoil food online. I’m going to have to check prices. I used to like grocery shopping, but I’ve really grown to hate the weekly obligation of playing bumper carts with fellow shoppers who are just as angry as I am, or angrier, to have to be there. I’d rather spend more time at home with my kids or working on stuff.

    • Accidental FIRE says:

      Yep, I do not enjoy grocery store trips. But at least TJs has friendly employees who make it a bit more bearable.

      Maybe you should send my post to your husband as a not-so-subtle hint 😉

  14. Joe says:

    I rarely visit big box stores these days. Walmart has a lot of items on free shipping now too so no need to drop by unless our kid need new shoes. Their kid tennis shoes are actually pretty good there. They last longer than Nike or other big brands.
    Anyway, we go shopping at grocery stores.
    I hate Costco. It’s way too busy there and I don’t enjoy the warehouse experience.

  15. Lindsay says:

    Another great article! I love Aldi because it’s almost all groceries and mostly one or two choices of each product. I can get a little overwhelmed in huge stores that have 500 different kinds of cereals (and granola bars, and ketchup, mustard and every other product). I don’t do a lot of online shopping either but I do know people who order constantly so I do think you have to be mindful of that. It’s easy to get carried away by clicking!

    • Accidental FIRE says:

      I’m with you, I hate too much choice, it paralyzes me. It also helps that I’m not a picky eater, so just give me a few basic choices and let me be.

      Thanks for the kind words Lindsay!

  16. Kris says:

    Whenever I go to stores like Target and Costco by myself and have a list in mind of what to buy, I only buy those items and that’s it. No spontaneous purchases and analysis of any item that may interest me. I have that laser focus when it comes to that.
    But when I’m with my wife it’s a different story. Whenever we plan to a trip to Costco, we have could five items in mind we need to buy but when were done we usually end up with 10-15 items plus something at the food court. It’s how Costco setup their aisles where they don’t mention what’s in the aisle, the consumer has to find out for themselves. A great marketing strategy on their part.

    • Accidental FIRE says:

      Wow, you sound super-disciplined, good on ya man! I’ve never even been inside of a Costco but had I known they did that I would have added it in the post. That is indeed savvy!

  17. Arrgo says:

    Good points you bring up. These stores use every trick possible to get you to spend even a few more dollars than you were planning to. I’ve really cut back and fine-tuned my habits a lot over the last few years. I realized I dont need all this stuff anymore (even though I can afford most gadgets etc) I dont like all these rich companies and executives trying to coral the masses like sheep. Just look at all the advertising on TV. I fight back and say screw’em wherever I can out of principle. Im not obsessive about it. but dont like all the up-charges, “fees”, add-ons, price increases etc. You dont need to be spending money every single day on all this stuff to be happy.

    • Accidental FIRE says:

      “Coral the masses like sheep” That paints a dystopian picture but I think it’s sometimes true. Thanks for the comment!

  18. Mrs Groovy says:

    I like Aldi although in full disclosure — they do have specialty items. And they got me on a memory foam kitchen mat that was ONLY TWELVE BUCKS! But it was so dang plush and thick we kept tripping on it and threw it out!

    I like picking out my groceries in person but I try to force myself to stick to the list. Try, being the operative word (see above).

    • Accidental FIRE says:

      Yeah my Aldi has half of an aisle of weird stuff like beer coolers and some toys. I’ve become great at looking past stuff like that in life so I guess I’m highly trained 😉

      As Yoda says, “There is no try, there is only do!”

  19. One of my coworkers told me she went to Costco the other day and spent over $300 and she goes there a few times a month. I was like……whaaaa, I thought that store was supposed to be affordable. I guess it’s easy to buy this and that when you’ve got so many things in front of you.

    Also, the vitamix is totally worth it. It’s awesome :).

  20. Team CF says:

    Kind glad we don’t have the big box stores around here. A grocery store sells, well, groceries! What a concept 😉

  21. Tawcan says:

    I recently did a comparison and some big box stores definitely cost more. When it comes to produce, local produce stores are usually cheaper & fresher.

    • Accidental FIRE says:

      Wow, that’s amazing. I don’t go into the big boxes enough anymore to compare but that’s surprising. Another reason no to go!

  22. I no longer shop at big box stores for some of these reasons. Okay, I admit I hardly shop at all anymore. I’m a lucky lady in that my husband does much of the shopping, saves my sanity.

  1. July 19, 2018

    […] Republished with the permission of Accidental FIRE. […]

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