Everyone knows living in NYC is expensive, but you start to accept/ignore how expensive after you’ve lived here for a while. One of the worst price premiums is on groceries. While we don’t have grocery superstores like the suburbs, we do have some moderately sized full grocery stores in the neighborhoods like D’Agostino and The Food Emporium. They aren’t huge, but they aren’t corner bodegas either so you’d expect the prices to be relatively reasonable- keyword being relatively.
In August of 2010, a new shopping center was opened in East Harlem next to the FDR, on 116th Street. (Map Location, NY Times Article) The new center is a four-story facility dedicated to box box retail and includes a Costco, Super Target, PetSmart, Best Buy, and Bob’s Furniture. Its not highly convenient getting to the 116th Street shopping center but its the first time we’ve had a Super Target or a Bulk Store like Costco/Sam’s Club. There is a 6 train local subway stop at 116th Street and Target gives free rides back and forth down 116th Street in a Target shuttle van. The trip to 116th Street isn’t terrible, but its certainly a lot more work than going around the corner in your own neighborhood.
I set out to compare the grocery prices at the neighborhood grocery stores vs. the Super Target to see if the savings outweighs the inconvenience of going up to 116th St & the FDR. I expected the prices to be lower at the Super Target but I was stunned at the discount (or markup of the local stores, depending on how you look at it). I understand basic business/economics and economies of scale, but there are hundreds of D’Agostino and Food Emporium grocery stores throughout the city. Is the purchasing power of Target so much greater that it explains the price differential between the stores? Or is there a nice profit premium going into the pockets of the owners of the local grocery stores?
I don’t want to lose our neighborhood grocery stores and be forced to shop at big box national chains, but that sentiment pales in comparison to my need to be a smart shopper. Considering the 67% premium to shop at the neighborhood D’Agostino, you’ll find me at Super Target for all my grocery shopping except for the most necessary or unplanned purchases.
Simply Orange, Calcium & Vitamin D, Pulp Free, 1.75 L
D’Agostino, Upper East Side: $5.99
116th St Target Superstore: $3.04
Yoplait Original Yogurt, Red Raspberry
D’Agostino, Upper East Side: $1.15
116th St Target Superstore: $0.69
Pantene Shampoo, 12.6 Fl Oz.
D’Agostino, Upper East Side: $6.99
116th St Target Superstore: $4.79
Quilted Northern, Ultra Plush, Double Roles
D’Agostino, Upper East Side: $4.69 per 4 = $1.17 per role
116th St Target Superstore: $6.89 per 12 = $0.57 per role
* D’AG does not sell packages of 12 and Super Target does not sell packages of 4
Mitchum Power Gel, 2.25 oz.
D’Agostino, Upper East Side: $4.59
116th St Target Superstore: $4.24
Total Difference
D’Agostino, Upper East Side: $18.72 + 14.04 (12 roles) = 32.76
116th St Target Superstore: $12.76 + 6.84 (12 roles) = 19.60
* Based on this small sample of basic groceries, it would cost 67% more to purchase the exact same items at D’Agostino than at the Super Target on 116th St.