Sweetbay Launches Store Brand Price War
Sweetbay wants consumers in Florida to know that when it comes
to saving on store brands, its prices are lower than Aldi, Publix, Walmart
and any other grocery chain that comes to mind.
The Delhaize chain is launching
its new "My Essentials" store brand
and, with that, it has promised to undersell any comparable store brand in
the market, according to a Tampa Tribune report. Sweetbay is beginning
its rollout this week with plans to have the more than 500 items in the line
available in its 105 stores by June.
Sweetbay is also promoting the nutritional quality
of its line with products free of trans-fats and containing lower salt and
sugar levels. The chain is confident that consumers will also be happy with
the taste profile of the new items and is offering a double-money-back guarantee
if shoppers are unhappy.
The latest move by Sweetbay follows an initiative last
July to demonstrate that the chain’s prices were lower than rivals Publix and
Winn-Dixie. Sweetbay claimed to have 700 products offered for a lower
the time, Sweetbay’s vice president of merchandising Geoff Waldau, told the Tribune, "BOGO
deals [offered by Publix] may cost less every once in a while, but we’re saying
that if customers shop with us over time, they’ll save week-in, week-out on
the things they actually want to buy."
Sweetbay’s price positioning comes
at a time when inflation has been driving up the cost of goods for consumers.
Federal estimates expect food prices to go up between three and four percent
this year. Individual categories could experience much bigger spikes.
- Sweetbay launches aggressive low-price strategy – The Tampa Tribune
- Sweetbay targets Publix in price war – The Tampa Tribune
Discussion Questions: What do you think of Sweetbay’s price image approach? Will it be effective in capturing shoppers who are currently going to competitors’ stores?