Retail manufacturers are lowering prices in response to budget conscious consumers, but that does not mean they are taking the hit by lowering profits. Manufacturing companies are simply offering less product for less money. This is not a new game either.
In Canada, dollar stores and discount retailers have long since zoned in on consumer spending habits, by offering merchandise similar to those found in higher priced department stores. Similar does not mean the same. Take gift-wrap for example. A roll of gift-wrap purchased for a dollar might look exactly like a roll sold elsewhere for two dollars, but you are really buying less wrap. It looks the same because the cardboard core is thicker.
The product resizing is not huge, and in most cases, you won’t even notice a difference. It is however; enough for the manufacturing industry to continue make a profit, while answering the call for lower prices.
