Prices Keep Falling.

I am noticing more and more that businesses are instituting plain old price cuts. I'm not talking about "sales". I'm talking businesses point out saying "We've cut our prices. Here's a few examples:

Jewel, a big grocery chain in the Chicago area has a big "ad" campaign now discussing how they've cut prices on thousands of items by 20%. http://www.jewelosco.com/eCommerceWeb/SaveAction.do?action=getBigRelief

ACDC concert special $29.50 @ the Meadowlands Giants Stadium . Flagged over @ The Big Picture. http://www.ritholtz.com/blog/2009/06/acdc-recession-special/

Mrs. Lumen Capital is particularly fond of a certain Austrialian chardonnay. Since I've been buying the same kind for her for a few years I know pretty much what it sells for. Lately I've noticed that it's at least a buck to $2.00 cheaper depending where I go to buy it.

I could go on. Certainly not everything is down. But I think as the credit crisis ripples through more and more of the economy this will become the norm. People either don't have the money now or aren't going to spend it. They're demanding value for what they purchases. Retailers that don't give it to them are going to be out in the cold and likely out of business. It's all part of The Big Reset we're all experiencing now.

PS. They've opened a Trader Joe's near us. It carries many of the same organic and cuisine items as our Whole Foods but most of their price points are again a dollar or two lower!