Dollar Meal Deals Come to the Supermarket Meat Case
Restaurant franchise owners have long claimed that so-called dollar meals are great for driving traffic up and margins down. So, what will the supermarket version of the concept mean for grocery?
Supervalu, according to a report on the Drovers CattleNetwork site, has launched $1 individual-size beef, chicken and pork items under its Shoppers Value private label. The company did not give details on what types of meat cuts could be purchased at the price point.
Neil Stern, a senior partner and analyst with McMillanDoolittle, told Drovers, “It’s a powerful way to translate value to a consumer, which grocery stores have done a historically poor job of. As they compete against restaurants, they can do a better job of communicating a ‘meal’ price.”
Company CEO Craig Herkert said on a recent conference call with analysts, “They’ve done very well for us. Our shoppers are responding to the value-oriented programs and new dollar price points that we have implemented.”
Dollar meats by Supervalu are consistent with the value push the company has followed under Mr. Herkert.
In a call earlier in the year to discuss third quarter results with analysts, he said, “I believe the thrift consciousness we are seeing in food retail is a secular shift, and we are positioning Supervalu to be a long-term partner of choice for communities we serve.”
- Dollar meat menu at the grocery store? Supervalu bucks up – Drovers CattleNetwork
- 2011 Annual Meeting of Stockholders – Supervalu
- SuperValu CEO Discusses Q3 2011 – Seeking Alpha
What do you think of food retailers adopting their own version of dollar meals? Will there be others rushing to emulate what Supervalu is doing?