Eight 99¢ Only stores in the Dallas-Fort Worth area are selling a gallon of milk for 90 cents for an indefinite time. The promotion reportedly came in response to Aldi cutting its price on a gallon of milk from $1.10 to 99 cents.
In announcing the promotion, 99¢ Only CEO Eric Schiffer, said, "Unlike some other retailers, you don't have to be a loyalty or club card customer to get in on the savings."
He added that 99¢ Only stores offer fresh fruit and vegetables, including a five pound bag of potatoes or a pound and a half of peaches, plums or nectarines, each for $1.00. (The ticketed price is 99.99 cents.)
"We don't lower our prices on some items and raise the prices on others to make up the difference, said Mr. Schiffer. "We work hard to provide our customers with great values on dairy, produce, deli, frozen food, as well as other household items for about a buck. We invite all Dallas Fort-Worth residents to visit our stores and look forward to having them as regular customers."
99¢ Only Stores, based in City of Commerce, CA, operates 279 stores consisting of 208 stores in California, 34 in Texas, 25 in Arizona, and 12 in Nevada.
Discussion Questions: What do you think about such single-item statement promotions as a competitive response? How much of a threat are dollar stores and limited assortment grocers to mainstream supermarket operators?