Milk Sales in Foodstores: Pricing and Other Merchandising Practices

Retail milk pricing and other selected merchandising practices used by retail food stores to sell milk in 56 markets are analyzed. The stores sold milk during 1969-71 at many prices--ranging from three prices in one market to 26 in another. Generally, price structures for milk were more stable in markets with State retail pricing regulation than in those without regulation. In regulated markets, a much higher proportion of all milk was sold at modal (most common) prices than in unregulated markets. Chain-owned supermarkets generally priced milk 1 cent to 2 cents lower than other supermarkets. The study also examines the importance of retail foodstores in the marketing of milk as indicated by their use of store brands and backward integration by the stores into milk processing.