Cutting Expenses in Retirement: 6 Stores To Stop Buying From
When you retire, your income level, tax bracket, investments, expenses and just about every other aspect of your financial life change — and your shopping habits should change with them. That means you might have to make a point of avoiding stores that you used to frequent when you were still working, because they don’t have a place in your new financial reality.
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If you’ve gotten used to shopping at any of the following stores, it might be time to find some new retail haunts that sell similar stuff for less.
Erewhon
According to Delish, shopping at the hyper-trendy health food store Erewhon is a status symbol experience for A-list celebrities, big-name influencers and the legions of pretenders eager to project a similar image.
If you’re collecting Social Security, you need to place more value on dollars and cents than likes and follows.
“It would be wise for retirees to avoid buying groceries from expensive grocery stores like Erewhon,” said Jake Hill, CEO of DebtHammer, where he helps seniors and others save money, avoid debt and improve their finances. “You can almost always find the same grocery items at other stores for way less money.”
Aside from the $200 annual membership, Delish says to beware of $25 loaves of bread. Food Republic laments the juice bar’s $22 smoothies. The Daily Mail cautions against $26 bottles of “oxygenated” water.
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Whole Foods
When Amazon bought Whole Foods in 2017, fans of the beloved but notoriously expensive grocery store hoped that the acquisition would combine Whole Foods’ selection and quality with Amazon’s competitive pricing.
That dream has not yet become a reality, and Hill recommends avoiding the trendy chain’s high prices and giving your business to a low-cost supermarket instead.
“In retirement, it’s important to focus on limiting your spending where you can, as a nest egg or fixed income can only go so far,” he said. “If you overspend, you can find yourself in a tough financial situation. So, prioritize buying groceries at less expensive stores to save money.”
According to Consumers’ Checkbook, a family that spends $250 weekly at the average-priced grocery store would spend $2,730 more per year if they bought the same groceries at Whole Foods. Better options would be Grocery Outlet ($2,600 less per year), Walmart ($2,210 less) and Food Lion ($1,300 less).
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Big-Box Electronics Stores Like Best Buy
One type of store to avoid is the kind where the next expensive gadget upgrade is always right around the corner.
“From data we’ve analyzed, retirees would be wise to avoid electronics stores that target consumers with extended warranties and unnecessary tech upgrades,” said Jenna Trigg, who co-founded Silver Fox Secure with her father to help combat the financial exploitation of seniors and other vulnerable populations.
“These can be particularly draining on a retiree’s finances, as the markup on these products and services is often exorbitant and preys on the fear of being left behind technologically,” she said. “Instead, by opting for refurbished products or utilizing local libraries and community centers for tech needs, retirees can save a substantial amount that would otherwise chip away at their nest eggs.”
Designer Outlets
Designer outlet malls are groups of single-brand stores that let consumers get their hands on high-end fashion and accessory labels for less — but not enough less to make sense for retirees on a budget.
“You see, while these stores may offer designer items at discounted prices, the fact remains that even a discount won’t save you from spending more than you should,” said certified financial and insurance professional Michael Benoit, owner and founder of ContractorBond.org.
“Their persuasive tactics make you believe that you’re getting a great deal, but in reality, your bank account is taking a hit. I suggest you try looking for similar styles at more budget-friendly retailers instead of buying that $500 purse for $300,” he said.
High-End Boutiques
Small boutique shops tend to have big price tags, because their customers are willing to pay for the allure of exclusivity — but retirees on fixed incomes should steer clear.
“I have noticed that these stores often carry luxury items with hefty price tags, which can quickly deplete retirement savings,” said Benoit. “For instance, a simple lily silk blouse or scarf can cost $139, and when you add in multiple purchases, it adds up quickly. In my opinion, it’s best to avoid these tempting stores altogether and opt for more affordable options, such as thrift stores or online consignment shops.”
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Convenience Stores Like 7-Eleven
Several experts also mentioned convenience stores, where customers pay a premium to get in and out quickly. According to a study from the Department of the Interior, convenience stores charge the average following product markups:
Prepared food: 120%
Automotive products: 93%
Hot dispensed beverages: 170%
Ice cream and frozen novelties: 101%
Ice: 262%
Health and beauty care: 132%
Candy: 100%
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This article originally appeared on GOBankingRates.com: Cutting Expenses in Retirement: 6 Stores To Stop Buying From
