Marsh Supermarkets last week announced a new program that guarantees that prices on certain popular grocery items won't rise for at least three months. The Indiana-based supermarket noted that the prices are guaranteed even if industry grocery prices increase, as they have for four straight quarters, according to the most recent market basket survey by the Indiana Farm Bureau.
"In these inflationary times, rising food prices can contribute to the economic pressures faced by many families in our communities," said Joe Kelley, Marsh chairman, CEO and president, in a statement. "Our new Good 'Til programs guarantee everyday low prices on thousands of items throughout our stores and offer families the opportunity to make their grocery budgets go farther."
Marsh's program is the first such effort in Indiana and Ohio, but similar programs have been available in the northeast, the company noted. Price Chopper, where Mr. Kelley had been an executive before joining Marsh in May, ran a Good 'Til promotion that started in July.
The programs will be offered four-times per year with each extending for about three months to adjust for seasonal preferences. Speaking to Supermarket News, Mr. Kelley said between 2,500 and 4,500 prices will be lowered in each round of the program, focusing on the most popular items.
Marsh is working with vendors with the expectation that both volume and margin dollars will improve.
"I think the Good 'Til program can grow to 15 percent of our total [$1.2 billion] volume if we do it right," Mr. Kelley told SN. "And 15 percent of our total volume, on the items the consumer buys most, will really resonate with consumers."