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Kathianne
08-27-2009, 04:45 AM
Lots of retail competition in both food and groceries:

http://www.chicagotribune.com/business/chi-thu-dominicks-0827-aug27,0,1166161,print.story


Grocery competition: Dominick's cuts prices up to 30% on some items

Move viewed as response to Jewel; price pressures mount as grocery stores compete with discount chains

By Mike Hughlett

Tribune reporter

August 27, 2009


Dominick's is firing a volley in what looks to be a grocery price war in the Chicago area, announcing that it's cutting prices on thousands of items.

The price-cutting spree follows a similar move in April by Jewel, and it mirrors pricing battles across the nation as supermarket chains battle a weak economy and increasing competition from big discount food retailers, particularly Wal-Mart.

Dominick's said the price cuts have been implemented over the past three weeks, and advertising for the new pricing structure starts Thursday.

The price cuts are as high as 30 percent on some items, said Don Keprta, president of the Dominick's division of California-based Safeway Inc. The company didn't release an average price cut.

The reductions will apply to a range of products at Dominick's 81 Chicagoland stores. "These are things the typical shopper will have on their list," Keprta said.

Dominick's will retain its "Fresh Values" loyalty card program, which offers lower prices to consumers who carry the card. Some items in Dominick's stores might feature price cuts based on the loyalty card and the new "everyday low pricing" program, Keprta said.

Dominick's is the Chicago area's second-largest grocery chain, with an 11 percent market share in January 2009, according to data from market researcher Nielsen Co. Jewel is the area's supermarket leader, with 39 percent of the market, according to Nielsen.

Jim Hertel, a managing partner with food retailing consultant Willard Bishop, said Dominick's widespread price cutting appears to be a response to Jewel.

In April, Jewel launched its "Big Relief Price Cut," reducing prices by up to 20 percent on thousands of items. It's unclear how effective the price cuts have been in generating more business because Jewel's parent company, Minnesota-based Supervalu Inc., doesn't break out results for the chain.

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actsnoblemartin
08-27-2009, 04:49 AM
good to hear. its nice walmart hasnt killed off the american spirit yet

:salute:

Kathianne
08-27-2009, 04:51 AM
good to hear. its nice walmart hasnt killed off the american spirit yet

:salute:

Actually Walmart is the reason that prices are falling a bit. Good for all, though the groceries won't make quite as much.

actsnoblemartin
08-27-2009, 04:53 AM
oh i see. well, i still hate walmart.


Actually Walmart is the reason that prices are falling a bit. Good for all, though the groceries won't make quite as much.

Monkeybone
08-27-2009, 06:35 AM
I thought that you were going to say Hotdogs..... oh well.


Also now that I think about it....isn't Chicago one of the main "buy Black" areas? maybe that is another reason some of the stores aren't doing as well....just not Wally World.

Kathianne
08-27-2009, 10:07 AM
I thought that you were going to say Hotdogs..... oh well.


Also now that I think about it....isn't Chicago one of the main "buy Black" areas? maybe that is another reason some of the stores aren't doing as well....just not Wally World.

Hot dogs, pizza, and fests are all good about Chicago. Also, The Lake, Museums, and theater. ;)

Big 'buy black' movement here, but wouldn't effect Jewel or Dominick's. Few of the big grocery stores in the city. No Walmarts, which of course keeps even the few groceries in the city, higher than in suburbs. They also are taxed higher.

red states rule
08-27-2009, 10:08 AM
oh i see. well, i still hate walmart.

Martin, Wal Mart has done more to help working middle class families then any government program

Wal Mart attracts new businesses whereever they open, provide jobs, and help lower overall costs in the area due to competiion

It is captalism at its finest

PostmodernProphet
08-27-2009, 10:18 AM
I've always liked Chicago....I live about an equal distance from there and from Detroit....when I go to Detroit I always wish I were in an armored car....when I go to Chicago I feel comfortable walking the streets....it just has a friendly feel to it......