Food and buying power

Just a few more miscellaneous prices from recent grocery runs to help calibrate.  These were at MasxMenos, a Walmart chain.

400g Prego spaghetti sauce: $3

1 big carrot (200g): $0.20

Ciabatta loaf: $2

Small cantaloupe (1.3kg): $0.80

Plantano maduro (ripe plantain): $0.20

18 eggs: $3.20

Black pepper in grinder: $4.50

Walmart has 4 brands here: Walmart, MasxMenos, Pali, and MaxiPali.  Walmart looks just about the same as the U.S.  The goal is "everyday low prices," though it is still above-average in niceness.  MasxMenos is their upscale grocery chain, but here upscale just means like a Safeway or Wegman's.

A Pali exterior.

Pali is their super cheap version, and is designed to attract those who would otherwise buy in their neighborhood corner store or the local open-air markets.  They have a specific strategy to place a Pali next to these markets; Pali uses Walmart's buying power to give better prices than any of the small market shops can offer.

This advantage, however, is only open to those who can afford to buy a bit more quantity.  For example, a pulperia (local corner store, frequently run out of someone's garage) will buy a 50 pack of diapers, then break it open and sell one by one.  This way a low-income consumer (LIC) can buy a quantity that matches their daily purchasing power.  Clearly the pulperia sells at a premium to the per-item price.  Pali may well sell a smaller pack (e.g. a 10-count) for a slightly lower per-piece price as a pulperia, but a consumer can't take advantage of this unless they can save enough to do a week's shopping in one go.  For those living truly day to day (or those not used to anything but "I have today, therefore I can spend today"), this is out of reach.

This starkly highlights a big hurdle to fighting poverty: it is expensive to live as a poor person.  The less you make, the more expensive the staples can be -- not only as % of income, but truly on a unit basis -- leaving you less able to save and break the cycle.

 

A Pali interior.  It looks like a mini-Sam's Club.  This picture doesn't represent how dark it is inside because the camera compensated for it.

Check out this Indexed chart, both so I can introduce you to one of my favorite sites and so I can repurpose her chart.  Imagine the same curve, but price/unit as the y-axis, income as the x-axis.  The left tip of the curve is "pays more because has no buying power."  The right tip of the curve is "pays more for convenience or because price is a marginal concern."