Supermarkets Chasing Consumers

Grocery shoppers are changing how and where they shop. Those who never set foot in smaller discount alternative markets are now going where they “think” the savings are. So supermarkets are chasing these consumers in various ways…

Most major supermarket chains have and still are lowering a thousand or more prices to EDLP (Every Day Low Prices). Safeway and Kroger banners did some lowering over the last few years. A&P just started a new price lowering campaign, with a new spokesperson, Kelly Ripa. Probably one of the biggest celebrities ever signed on to a supermarket. They mean business!

Some major chains are opening up smaller alternative markets, with a focus on discount groceries. Delhaize, who owns Food Lion, has their smaller discount version called Bottom Dollar. And Wakefern owned Shoprite has their PriceRite discount version. Both companies have vowed to roll out more this year and next. Delhaize has held at 28 Bottom Dollars since 2008, and are now expecting to move forward again, and double the number of stores by end of 2010. Properties are cheap, and it’s a good time to roll out more stores.

We also have numerous dollar stores on the rise, along with discount grocers like Aldi. Together, they’re taking a greater share of the market than ever before, and expanding with more stores. Aldi opened up a plethora of stores in the Dallas area. Plus, they’ve managed to attract shoppers even in more afluent areas of DFW. Consumers are on the move!

With all that said, I promised to reveal the Aldi comparisons that we did for some press in the DFW area. We spent $95.67 at Aldi on groceries, health & beauty and paper goods. Using coupons with sales at Kroger, we bought the same quantity or more of brand name products for $65.69, a 31% savings over Aldi. The same results are expected when playing nationwide. Remember, we’re investing at the right time, with rock bottom sale with coupon.

Now, dollar stores… Our Quality Control department put together some figures from our databases nationwide compared to “Dollar Tree”. Frozen fruit was the best deal, and was the same or beats the frozen fruit at most supermarkets when on sale with coupons. Other than that, supermarket sales beat Dollar Tree by an average of 34%. Add a coupon to the mix, and supermarkets blew them away. The difference with coupon and sale was as high as 80% savings over Dollar Tree. 

Don’t try this at home… If you do your own comparisons, you’ll come up confused. But if you play, you’ll agree. We’re not eliminating Aldi and Dollar stores from reality. We know there are good deals, and even Gamers stop in for “need shopping”. But they’re not the last word in savings. If you understand The Grocery Game, you know that EDLP (Aldi), has low prices all the time. But when major supermarkets (Hi-Lo pricing) goes on sale, their sale prices typically dip lower than Aldi. Add a coupon, and you’re saving even more. It’s a 12 week cycle that we follow to invest in Grocery Game style. It’s strategic and it works, with or without coupons.

Too bad consumers don’t know all that. If they did, the supermarket chains wouldn’t have to build all those smaller version discount stores… sigh…

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