Media Contact: Lori Willis
Director of Communications
Jan. 15. 2007
Schnucks Lowers Prices On Thousands of Everyday Items
New Low Prices Represent a Shift in Pricing Philosophy for Hometown Grocer
Typically known as a "penny margin"
industry, these cuts represent a major shift in pricing philosophy for the
According to Schnuck, over the past two years, Schnucks associates in stores, warehouses, plant facilities, transportation and central offices have put forth a tremendous effort in cutting costs, eliminating waste and improving operating efficiencies. "We met with our associates and explained that if we could cut operating costs, we could pass those savings on to our customers. They rose to that challenge, and now our customers are reaping the benefits," Schnuck said.
Realizing that such a significant change in their business would cause ripples across the company, Schnucks leaders first tested the program by lowering prices in out-state markets. Senior Vice President of Marketing and Merchandising Randy Wedel explains, "Customer response was so encouraging that we expanded the rollout into our home base. Last year, we lowered prices on 3,200 items in the metro area and are now prepared to take the next step by lowering prices on an additional 10,000 items."
"When we initially lowered metro area prices, we tagged them as `Price Breakers.' At the same time, we also aggressively promoted `10 for $10' items and continued our traditional pattern of advertising special buys and matching competitor coupons," Wedel said. "Now, we are making a significant, long-term investment, and we want our customers to know about it."
Schnuck emphasizes, "In addition to the lower prices, aggressive specials and double coupons, we are proud to offer our customers the added value of the tremendous quality found in our perishable products such as Certified Angus Beef®.. "Now, more than ever, we believe Schnucks offers customers the best total value - lower prices, without compromising quality or service."
While competition is a factor in the new strategy, Schnuck says the company is performing well under increasing competitive pressure from traditional grocers as well as from big box operators. Company leaders hope this new pricing strategy will keep the 68-year-old business even more competitive going forward.
President Todd Schnuck explains, "As an example, our stores are currently competing favorably against 55 Wal-Mart supercenters across all markets, and like most other businesses, we continue to battle rising expenses, including fuel and healthcare. Yet, I believe our company remains strong thanks to our associates, our commitment to our customers and our resolve to remain competitively priced in all markets we serve."
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