Monday, January 26, 2004

THE UPS AND DOWNS OF THE COMMISSARY

"Commissary" is the military word for our on-post grocery store.

This story highlights how the severe decline of the dollar's value agains the Euro has more of us shopping at the Commissary. But it also shows how certain locally procured items are still no bargain.
According to DECA, 22 percent of its goods are purchased on the economy. That includes items such as coffee, eggs, produce, pork and even some sodas. Due to the dollar’s declining value, those products cost more to procure, and, hence, require a higher shelf price.

So for DECA customers, the typical “basket” of goods costs more today than it did a year ago.

But that alone doesn’t explain the increase in the agency’s revenue.

Because the dollar doesn’t stretch as far as it used to on the local economy, the average DECA customer has adjusted his spending habits, said Gerri Young, spokeswoman for DECA-Europe.

Today, “more of our customers shop on base more often, and when they shop they buy more,” Young said.

For instance, a single head of iceberg lettuce was recently priced at $2.10 because it is purchased by the Commissary system from farmers here in Europe.

Ouch!

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