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ARTICLE · 11 SEPTEMBER 2025

Why Hi-Lo Pricing No Longer Works For Grocers Or Customers

AlixPartners Asia LLC
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The hi-lo pricing strategy wasn't designed for the modern landscape, and the declining market share of traditional supermarkets proves it.

United KingdomConsumer Protection
Marco Di Marino
Marco Di Marino
Matt Hamory
Matt Hamory
Matt Quinn
Matt Quinn
Joanna Su
Joanna Su
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The hi-lo pricing strategy wasn't designed for the modern landscape, and the declining market share of traditional supermarkets proves it. Grocers need a new model. In this two-part article, we'll discuss:

  • Why hi-lo was once a viable option but will be an untenable one in the near future.
  • Hazards of hi-lo: price perception problems, margin erosion, mindshare monopolization.
  • Why we recommend "everyday fair price" instead.
  • Areas to evolve: promo dynamics, pricing strategy, supplier negotiations and more.

The pillars that elevated hi-lo as the pre-eminent pricing strategy in grocery the past 30 years have crumbled, and it's time for grocers to clear the rubble and build something new.

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