Wegmans Cutting Prices

This is old news. Wegmans came out a couple of years ago with a short infomercial on their price cuts. It's available on and it was posted in August of 2007. I don't think it's exposing a weakness but rather it's revealing another one of Wegmans' strengths.

David Livingston, Principal, DJL Research

I've always found Wegmans to be lower in price overall on groceries, having compared their prices against Genuardi or Giant. They keep prices low instead of having sales. The items I find expensive are the ready-to-eat from the cafe area. If they cut prices even more, it's worth the longer drive.

'Janpor'

Remaining sensitive to your customers is never a weakness. If Achilles had heels like Wegman's Troy would have fallen a lot faster.

Ryan Mathews, Founder, ceo, Black Monk Consulting

These are truly different and difficult times, so if it's absolutely necessary, Wegmans has to do what it has to do. But it is such a wonderful, unique retailer. My only fear is that cutting prices could mean Wegmans will have less money to provide the service that has done so much to provide it with differentiation. From there, it's a slippery slope.

Warren Thayer, Editor & Managing Partner, Frozen & Dairy Buyer

Demonstrating sensitivity to consumers' circumstances is a good thing.

Camille P. Schuster, Ph.D., President, Global Collaborations, Inc.

Regardless of how much margin Wegmans invests in these price cuts or how well they maintain share vs. other stores or channels, this is an example of great retail marketing. Understanding the customers and their needs, of course, but also the combination of pricing strategy and execution/communications. While a price cut from $2.39 to $1.99 is fairly noticeable (both based on percentage change and leading digit), not all are as obvious to the customer.

Communicating the new value and lower prices is critical. A press release that local papers might pick up, along with the quote from Danny, sends a message to their customers that then is reinforced with in-store signage, etc (and have you seen the home page of their website lately?).

Many of our customers use price optimization to lower prices and to do so by investing fewer margin dollars...and a critical success factor in those initiatives is coupling the price changes with the kind of execution Wegmans is demonstrating.

Marc Dietz, VP, Marketing, DemandTec, Inc.

Wegmans is a family-run business. Family businesses do not have "quarter-itis" and can take a longer view on strategy. They really look at time frames of a generation.

Wegmans provides a fun shopping environment with what is termed "purposeful theater." They recognize that people shop there for their uniqueness but they are smart enough to recognize that is far better to reduce prices to keep those customers coming.

The economy will eventually turn around...certainly in a far shorter time than one generation.

Just a different perspective from a family business expert!

Dom Celentano, President, The FoodPreneur