It's not a random act of shelf stocking that puts those national brand canned peaches at eye level. Nor is it a shortage of space that has certain breakfast cereals stacked at the end of aisles. Grocery suppliers pay supermarkets thousands of dollars to have their products stocked. These slotting fees can determine whether an item gets placed on a middle shelf or down at the bottom where it's harder to find. In the world of grocery marketing, shelf space and position are critical.
Critics say slotting fees curb fair access to the market and erode consumer choice.
Big companies are able to use their big bucks to keep competitors' products off the supermarket shelf. And many small producers can't afford the high slotting fees and are relegated to low-traffic specialty stores and the corner market. These are all costs that get passed along to the consumer in the form of higher prices. Stores can charge a company to remove a dud product or order a manufacturer to buy it back. Manufacturers are reluctant to blow the whistle on slotting fees, fearing retribution from chain retailers and dominant manufacturers.