Date post: | 31-Dec-2015 |
Category: |
Documents |
Upload: | douglas-weaver |
View: | 218 times |
Download: | 0 times |
Department stores & supermarkets? - supermarkets and department stores pricing schemes and renovations
Andrew HillBobby PfennigsSeunghee Cha
Supermarket and department store trends
Supermarket: Safeway, Albertson’s Department Store: Marshall’s, J.C.
Penny 50-70 percent off specials BOGO's (Buy One, Get One) Both started to shift from toward
EDLP (Every Day Low Prices)
What Customers are looking for
They soon found out that customers go to supermarkets or department stores for the bargains
For EDLP, consumers tend to go to big discount stores such as Wal-Mart or club stores for EDLP
Admitting Defeat
The Supermarkets and department stores realized that there was no way to compete against Wal-Mart’s low prices.
So they are realizing that they must transition back to bargain pricing and differentiate themselves in other ways.
Bringing in customers
The supermarkets and department stores are doing a number of things to bring in customers: Putting clear signs up to tell the customer
where to go for certain items The customer likes easy shopping
Spending millions on renovations to improve ambiance
They can charge more for the experience
In Summary They have learned
that making it easier for shoppers to shop pays off!
Customers are willing to pay a higher price for a better shopping experience.