The general impression one gets of consumers who visit Wegmans is that they are there for the shopping experience and less concerned about price. While that view may have been somewhat true in the past, even Wegmans' shoppers are facing some harsh financial realities and are looking for deals. If Wegmans can't provide them then some other company will.
Now, it appears that cash-challenged regulars at Wegmans can put off looking for alternative supermarkets with the chain's announcement that it is cutting the prices on hundreds of items across its stores.
"These are uncertain times," Danny Wegman, chief executive officer, and Colleen Wegman, company president, said in a joint statement. "We know our employees and customers are very concerned, and so are we. During difficult times like these, it's okay with us if we make a little less money."
Wegmans believes it can cut retails now as it expects to see lower prices from suppliers in the months ahead. A company release pointed to lower fuel and grain costs as the reason the chain is looking for vendors to decrease their prices in the near future.
Jo Natale, a spokesperson for Wegmans, said the chain's price reductions would mean monthly savings between $40 and $60 for the average family shopping at the chain's stores.
Wegmans is putting added emphasis on lowering the prices of its private label line. "We can be more aggressive with reductions because we have better access to detailed information on the factors that determine costs for those items," Ms. Natale said. "These products are already the best value in their respective category, and customers are choosing them more often as a way to save money."
Discussion Questions: What will Wegmans' price cut mean for it and its competitors? Has the economic downturn exposed Wegmans' Achilles' heel?