Lowest Prices Come Down to Consumer Legwork
By George Anderson
It is generally assumed that Wal-Mart has the lowest prices on grocery products but that’s not true, according to Michael Berberick of “The Grocery Advantage” web site.
According to a report on WCPO.com, Mr. Berberick analyzed the price of groceries in three Ohio markets (Cincinnati, Columbus and Cleveland) for close to a year and found
consumers can actually spend less shopping in supermarkets such as Kroger than in “Always Low Prices” Wal-Mart.
The key, said Mr. Berberick, is to find the weekly specials in stores and buy those while waiting for promotional deals on other items.
Using this method, consumers can get “20 to 25 percent savings over Wal-Mart’s everyday low prices,” said Mr. Berberick, “and that’s a big number.”
Moderator’s Comment: Is one method of pricing/marketing better than the other — Hi-Lo or EDLP? Are the products that Hi-Lo operators are discounting
the right ones to establish a low price image? How does a Hi-Lo operator establish that it is price competitive with operators such as Wal-Mart, Target and others around?
George Anderson – Moderator