Supermarkets Cut Back on Discounts
New York City, Some supermarkets are cutting back on promotional discounts and are starting to offer everyday low prices like Wal-Mart and other discounters. Traditionally, grocery stores have weekly specials to attract consumers and keep their non-sale items at higher prices. Last year, however, traditional supermarkets controlled only 52% of U.S. grocery sales. Ten years ago, traditional grocery stores controlled 81% of sales. With the increase in discount suppliers, traditional grocery stores have had to compete with pricing.
Companies such as Safeway and Albertson’s still use sales to attract shoppers, but are increasingly closing the gap between everyday and sale prices. Grocery store companies believe shoppers today are busy and not as willing to search for good deals as they were in the past.