Wegmans Cutting Prices
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.
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.
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.
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.
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."
What will Wegmans’ price cut mean for it and its competitors? Has the
economic downturn exposed Wegmans’ Achilles’