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.
...
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.
...