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.

Bibliography "Department stores & supermarkets? - supermarkets and department

stores pricing schemes and renovations". Shopper Report, The. Oct 2003. FindArticles.com. 06 Mar. 2007. http://www.findarticles.com/p/articles/mi_m0YQW/is_2003_Oct/ai_1103

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