10 Supermarket Pricing Strategies To Try Today

Pricing impacts everything in a supermarket, from profit margins to how customers see your store. 

Set prices too low, and margins suffer; too high, and shoppers may choose big-box chains. It often feels like a choice between racing to the bottom or marking up products and risking customer loss.

There’s no one-size-fits-all solution. But with the right initiatives and a point of sale (POS) system that gives you access to real numbers, you can price with more confidence — and better results.

Let’s explore 10 different supermarket pricing strategies you can start implementing today.

1. Use Loss Leaders To Drive Volume

Some of the most effective grocers use loss leaders — everyday staples like milk, bananas, or eggs sold at a low price point — to bring customers through the door. The strategy isn’t to profit off those items, but to encourage shoppers to pick up higher-margin products while they’re in the store and increase the overall transaction value.

For example, selling bananas at 19 cents per pound might not generate much revenue, but placing them next to premium yogurt or granola can help increase the total basket size.

Aldi is a great example of this strategy in action. They consistently offer low prices on items like eggs or bananas to get people in the door, but nearby, you’ll often find specialty cheeses or snacks that carry much better margins.

Here are some tips to apply this supermarket pricing strategy:

• Choose high-traffic items that customers regularly need.
• Set quantity limits to prevent stockpiling and control margin loss.
• Group with profitable products by placing full-margin items next to the deal.
• Advertise with intent using shelf signs, SMS alerts, or app push notifications.
• Rotate weekly so regular shoppers have new deals to come back for.

Your POS system gives you access to sales reports that can help you spot trends in which products sell well together. You can review data from mix and match promotions to see which pairings lead to higher total sales. Over time, this helps you make more informed decisions about display placement and bundled deals.

2. Implement Competitive Pricing for Known Value Items

Customers often judge a store’s pricing based on a handful of familiar products. These known value items (KVIs) include staples like eggs, soda, or national-brand snacks that shoppers frequently compare across stores. If those prices seem high, customers may assume everything else is, too.

Walmart, for example, uses this strategy to keep prices low on popular KVIs like soda or store-brand milk. Doing so creates a perception of greater overall value, even if other items carry more substantial margins.

Margins on KVIs might be slim, but they help build trust and keep customers coming back. The key is knowing which products shoppers are price-checking and adjusting strategically, not slashing prices across the board.

Here are some tips to apply this supermarket pricing strategy:

• Identify your store’s most price-sensitive items using POS sales data and local market research.
• Match or stay close to big-box pricing on those items to avoid losing shoppers.
• Avoid discounting private-label items too heavily — customers don’t compare those as often.
• Monitor prices at nearby chains or use a pricing intelligence tool to stay competitive.
• Use signage or tags to call attention to competitive prices on high-traffic items.

POS reports can help identify which products drive volume and which aren’t worth discounting. By focusing efforts on the handful of SKUs that matter most to shoppers, you avoid margin cuts where they aren’t needed.

(Image source: TalkBusiness)

3. Price by Category, Not Just Item

Balancing profit margins starts by setting pricing guidelines based on product categories rather than individual items. This approach helps keep pricing uniform across departments like dairy, frozen foods, produce, and pantry staples, making margin management more straightforward. 

For example, frozen foods usually support higher markups than dry groceries, while private-label items may follow different pricing rules than national brands.

Whole Foods uses this model with their 365 Everyday Value line, keeping prices consistent across several categories while charging organic produce separately to reflect its premium status. 

Here are some tips to apply this supermarket pricing strategy:

• Group products into categories with similar margin expectations, like dairy, frozen, produce, and pantry staples.
• Define markup percentages per category based on past sales and profit data.
• Adjust markups for private labels vs. national brands within each category.
• Regularly review category performance through your POS to spot when rules need updating.

Use reports from your POS system to understand the breakdown of sales and profit by category, helping spot trends or categories that need pricing adjustments. 

Consistently tracking this data can help you make more confident, uniform pricing decisions across departments without manually calculating each product.

Related Read: Grocery Analytics: 5 Ways To Inform Buying Decisions

4. Emphasize Premium Pricing on Specialty & Private-Label Products

Specialty and private-label items can help you increase profits with higher price points based on quality, uniqueness, or exclusivity. Customers typically expect to pay more for organic options, locally-sourced goods, or store-exclusive brands.

Retailers like Trader Joe’s and Costco show how private-label products can hold premium prices when their value is clear. Highlighting benefits through signage, shelf placement, and staff education reinforces why these products justify a higher price.

(Image source: Daily Meal)

Here are some tips to apply this supermarket pricing strategy:

• Research customer preferences and willingness to pay for specialty items through surveys or sales data.
• Position private-label brands as quality alternatives with clear messaging about their benefits.
• Experiment with limited-time premium bundles or exclusive product launches to test price elasticity.
• Train staff to communicate the value proposition of specialty and private-label products to shoppers.

You can use your POS system to monitor sales performance for these products, helping identify which items can actively sustain higher prices. Tracking sales trends and customer feedback helps keep pricing in line with demand.

Related Read: How To Promote Private Label Products: 6-Step Guide for Grocers

5. Use Price Anchoring To Guide Choices

Shoppers don’t always know what a “good” price is. But by showing them a more expensive option first, you influence their perception of value.

Price anchoring is the strategy of presenting a higher-priced item alongside a more affordable alternative, helping the lower-priced option appear like a better deal — even if it’s still profitable for the store.

For example, placing a $14.99 olive oil beside a $22.99 imported brand encourages customers to choose the mid-range product, often boosting its sales and margin. Retailers like Whole Foods and Target often use this technique with good-better-best tiers across many categories.

However, remember that too many options may overwhelm shoppers. A study by Sheena Iyengar and Mark Lepper showed that when offered six jam flavors, 30% of shoppers bought, but with 24 flavors, only 3% did. 

This “paradox of choice,” described by psychologist Barry Schwartz, highlights how excess options can cause indecision.

Here are some tips to apply this supermarket pricing strategy:

• Group products with varied price tiers together to encourage comparison.
• Limit the number of options per category to avoid overwhelming shoppers.
• Use signage or shelf tags to highlight the features of the mid-range item (e.g. “customer favorite” or “great value”).
• Avoid making the lowest-priced item the focal point unless it supports a loss leader strategy.
• Test different anchor prices to see what drives the best performance for the middle-tier product.

To test those different anchor prices, use your POS data to assess which price points actually move product, and whether anchoring changes shopper behavior. When done well, anchoring supports higher-margin sales and helps shoppers feel more confident in their choices.

6. Offer Time-Limited Promotions To Create Urgency

Everyone hates the fear of missing out, and limited-time deals tap into that psychology, motivating quicker purchases and increasing store traffic. 

When customers know a discount or special offer ends soon, they’re more likely to act instead of delaying or shopping elsewhere.

Many grocery chains, from Kroger and Safeway to regional stores, run weekly or weekend specials that combine urgency with popular items to boost short-term volume and clear slow-moving stock.

Related Read: Need Supermarket Promotion Ideas? Here Are 6 To Try

Here are some tips to apply this supermarket pricing strategy:

• Schedule weekly or biweekly promotions to keep offers fresh and customers returning.
• Promote limited-time deals through in-store signage, email, and SMS alerts.
• Set clear start and end dates for promotions to emphasize urgency.

Use your POS to identify products that benefit most from quick-turn promotions, like slow movers or seasonal items, and track how well each promotion performs. This data helps you fine-tune both the timing and product selection for future deals, making your strategies more effective over time. 

While time-limited promotions can boost foot traffic and sales velocity, it’s important to use them strategically. Overusing these deals risks training shoppers to wait for discounts rather than buying items at regular prices.

7. Implement Psychological Pricing To Influence Perceptions

Though it may sound counterintuitive, pricing isn’t just about the numbers — simply how prices look can shape what shoppers think about value. 

This supermarket pricing strategy uses subtle cues to make prices seem more attractive without cutting into margins. For example, pricing an item at $4.99 instead of $5.00 creates the impression of a better deal. 

Many grocery retailers, including Walmart, Kroger, Target, and Amazon Fresh, regularly use this approach to influence buying decisions.

Another method is “charm pricing,” where prices end in 9, 7, or 5 to trigger a perception of a deal or bargain. This can be especially effective for impulse buys or smaller-ticket items.

(Image source: InvoiceBerry)

Here are some tips to apply this supermarket pricing strategy:

• Use prices ending in .99 or .95 for products where a slight discount perception can increase sales.
• Avoid rounding prices to whole numbers unless the product or brand image calls for a premium feel.
• Test different endings to find what resonates best with your customers and categories.

Use your POS system to monitor how these adjustments affect both sales volume and profit margins — not just at the product level, but across entire categories. Over time, these insights help clarify whether psychological pricing strategies are actually moving more units, increasing basket size, or influencing shopper behavior the way you intended.

8. Leverage Dynamic Pricing for Seasonal or Perishable Goods

Not every product needs a static price. In fact, it’s good practice to adjust prices for seasonal produce, fresh bakery items, and dairy products nearing expiration to reflect their changing value. 

Dynamic or seasonal pricing lets you adjust based on supply, demand, and shelf life — think pricing for items during high-demand periods, like summer holidays or back-to-school. Lowering prices on items with a short selling window reduces waste and recovers margin that would otherwise go to waste.

Most supermarkets use this strategy to manage seasonal inventory, reduce waste, and protect margins. Retailers like Whole Foods and H-E-B adjust prices based on demand, seasonality, and freshness, often guided by POS sales data. 

Here are some tips to apply this supermarket pricing strategy:

• Identify which categories benefit most from flexible pricing, especially perishables and seasonal items.
• Lower prices incrementally as expiration dates approach to drive last-minute sales.
• Raise prices modestly during peak demand windows when customers expect higher pricing (e.g. strawberries in February).
• Use shelf signs or digital displays to communicate limited-time pricing based on freshness or seasonality.

A modern POS system with inventory tracking makes dynamic pricing easier to manage, letting you schedule price changes in advance, set up discount rules for aging stock, and view real-time performance data to adjust in the moment. 

9. Reward Loyal Shoppers With Targeted Discounts

Acquiring new customers is expensive, costing five to 10 times more than selling to a current one. Existing customers, on the other hand, spend 67% more on average — so it makes sense why so many supermarkets implement loyalty programs and rewards. 

Related Read: Customer Loyalty Trends: 4 Ways Listening To Customers Will Grow Your Grocery

Loyalty pricing offers targeted discounts, digital coupons, or member-only deals that encourage repeat visits and strengthen customer relationships. 

Kroger’s program, for example, tailors offers based on past purchases via their app and digital coupons. Safeway and Giant also use similar strategies to reward loyal shoppers while gaining valuable buying insights.

(Image source: Coupons in the News)

Here are some tips to apply this supermarket pricing strategy:

• Let customers enter their contact info at checkout for targeted offers. 
• Use purchase data to identify frequent shoppers and preferred products.
• Create loyalty pricing rules based on real buying habits.
• Highlight member-only deals with shelf tags or digital alerts.

Your POS should include features to help you identify loyal shoppers or personalize offers within a loyalty program. 

Custom customer pricing, for example, lets you set special discounts for individual customers. Flexible discounts can also be appealing, offering loyalty members a percentage off their purchase rewards based on purchase frequency or total spend.

10. Monitor & Adjust Prices Using Real-Time Data

Effective supermarket pricing strategies require ongoing attention — not a “set it and forget it” approach.

Market conditions, competitor moves, and customer preferences constantly change, so grocery retailers need to regularly review and adjust prices to stay competitive and protect margins.

Here are some tips to apply this supermarket pricing strategy:

• Schedule regular reviews of top-selling and margin-critical SKUs.
• Use POS reports to track competitor pricing and customer response.
• Adjust prices proactively for seasonal trends or unexpected changes.
• Combine data insights with your overall pricing strategy for balanced decisions.

A modern POS system presents real-time sales and inventory data, helping you spot trends and gauge customer reactions to price changes. With an industry-specific POS, you can confidently adjust prices to protect margins and prevent lost sales — all while keeping your offers aligned with demand and market shifts.

Your POS System’s Role in Supermarket Pricing Strategies

Successful supermarket pricing strategies depend on accurate, up-to-date data and the ability to respond quickly — and your POS provides exactly that.

With detailed sales reports, comprehensive inventory management, customer tracking, flexible discounts, and more, a specialized POS solution like IT Retail offers a clear view of which products drive sales, how customers respond to pricing, and where margins can improve.

Want to see how IT Retail can support your supermarket’s pricing strategies? Schedule a free, personalized demo today to discover how our tools provide the data and control you need to manage pricing with confidence.