How Grocery Stores Are Feeding Fears

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Longer-term, the impact of data collection could be far more disturbing. Using cards to track purchase histories, stores are beginning to segment customers into groups based on how much and how often they purchase. Such information will help stores target desirable -- read: profitable -- customers and cater to their needs.

LESS INCOME, HIGHER PRICES? This is high priority in the grocery business. After all, the top 30% of customers account for 75% or more of sales, while the bottom 30% account for just 3%, according independent grocer Gary Hawkins, who also serves president of Syracuse (N.Y.) consulting firm DataWorks Marketing. Ultimately, the information could be used to tailor prices to individual shoppers -- much the way airlines charge vastly different prices for two seats on the same flight. While that makes economic sense, under a worst-case scenario, the system could discriminate against lower-income shoppers who may simply have less money to spend.
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