In response to the anticipated arrival of Wal-Mart into the local market, one American grocery chain has announced that it is lowering prices on some 10,000 grocery items to compete with the world’s largest retailer.
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The Schnucks Markets chain is slashing the cost of grocery products in the St Louis, Missouri, area in anticipation of the launch of new Wal-Mart Supercenters.
Schnucks CEO Scott Schnuck told local news he expects Wal-Mart to open 35 stores. The entry of Wal-Mart is: “the biggest threat the grocery industry has seen in a long time,” he commented.
Schnucks responded to Wal-Mart’s heavily promoted organic offerings this past summer by rolling out a new signature line of 120 all-natural and organic products in the grocery, dairy, and frozen foods departments.
Prices will be reduced at 68 of its 101 stores, the 68-year-old company’s most dramatic pricing move in decades. The move follows price reductions of many items last year and recent “10 for $10” promotions and matching competitors’ coupons.
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By GlobalDataThe price of bananas, the company’s best-selling product, will drop by 15%, while the price of a carton of orange juice will be cut by more than a dollar. Schnuck said: “customers will definitely notice a difference on their next cartload of groceries.”
