Published on: October 14, 2008
Commenting on a story saying that Walmart was going to ramp up its private label activities, I suggested that there was no reason that the Bentonville Behemoth couldn’t do what companies like Trader Joe’s and Costco have done to great success. Which prompted one MNB
user to write:I think you hit the nail on the head with the mentions of Trader Joe’s and Costco in your view section…with Walmart coming out with a new smaller format that isn’t branded Walmart, they have another venue for private label that doesn’t conflict with their core strategy. Sam’s Club is another corporate banner that can benefit from increased offerings in PL as well.MNB
user Bob Vereen wrote:If Walmart would check out the Aldi private-brand strategy, it could add value to its low priced national brands--i.e., excellent quality at very attractive prices. I eat cereal every morning, and Aldi's cereal is every bit as good as any of the national brands, and priced from 20 to 30% cheaper, and even 15% cheaper than national brands on sale.
It is my opinion that Walmart already has one of the world’s great retail brand names – everybody knows exactly what it stands for. If you like what it stands for, there is no reason you wouldn’t at least try certain products bearing that name. They’ll have to be inexpensive compared to national brands, and they have to be of equivalent or better quality.
But done right, there is no reason this can't be a home run for Walmart.
Responding to yesterday’s story about Food Lion’s new marketing program called “Dinner For Under $10,” which on a weekly basis will pull together in one place all the ingredients for a single meal – all that sell for under ten bucks, MNB
user Sharese S. Alston wrote:I think this is a phenomenal idea! I will be honest. I don’t usually shop at Food Lion. In our area, there are only a few and it seems they have trouble competing price-wise with others like Acme and Super Wal-Mart. Most of their items are $.50- $1.00 more, so I don’t usually frequent their shelves. BUT as a single mother, I personally would visit weekly just to get new ideas for reasonable meals. Why not? Even if I don’t purchase and make the meal that night, I think the knowledge would be useful and I could save the idea for future use. Kudos to Food Lion for thinking outside of the box.
user wrote:I saw this commercial on TV this weekend, makes me wonder if Food Lion is reacting to KFC, or vise versa?
THE KFC $10 CHALLENGE (0:30)
KFC challenges Americans to see if they can create a family meal for less than $10. With Colonel Sanders’ secret herbs and spices, KFC knows families can’t recreate this delicious meal for any price. For busy families on a budget, KFC’s 7-Piece Value Meal is the only value offer that is a real family meal for less than $10 as it includes chicken, a side and biscuits for $9.99.
Not sure if this is a specific reaction, but at the very least Food Lion has to be applauded for being aggressive about share of stomach. Which as you all know, is a big theme around here…
user chimed in:As both a consumer and one who is involved in the industry, I think this is a great idea. Have one designated spot in the store so the consumer knows where to go every week - have all of the items assembled and recipe cards - showing what you need to buy for the recipe and what you should have on hand. To increase loyalty Food Lion could incorporate their weekly specials. Perhaps once a month they could do tastings on the recipes.
From your lips to Food Lion’s ears…
We had a story yesterday about how questions are being raised in the Colorado media about a pricing program being used by Nash-Finch at its Avanza store there.
The deal is this. Nash-Finch advertises item prices, which is also displayed on the shelves, but adds 10 percent to the basket total at checkout. There are signs posted in the store that explain the program, and the 10 percent surcharge is clearly indicated on register receipts, suggesting that this actually lowers prices for shoppers, but local media reports say that at least some customers are complaining that they have been deceived.MNB
user Al Kober wrote:The big question is “What is Cost”? The can be defined by many factors. Costs before rebates, Cost before accruals and the beat goes on….
user Tom Thomas wrote:Read thru the 9 News article, and also the responses to the 9 questions posed to the Nash Finch representative regarding their pricing structure, and still am not clear: Did Nash-Finch lower prices across the store in conjunction with implementing the 10% surcharge? Shouldn’t this have been one of the 9 questions to clarify the structure, along with a net price comparison against the other markets?
This is precisely problem. It is not clear. Not transparent. Which is why Nash-Finch is feeling some heat.
On the subject of retailers starting up their own farms, one MNB
user wrote in to say that it actually is an issue with greater implications:Food security is a very growing TREND. Search the Internet for Urban Farming, CSA’s, sustainable cooperatives, farmer’s markets…you’ll be surprised…especially Urban Farming. One acre of land is equivalent to a football field (minus the end zones). 20 urban houses, each with a 15’ X 30’ garden is the equivalent of 1/5 an acre – you can grow a lot of vegetables if you coordinate with your neighbors - and - eat fresh and canned fruits and vegetables all year long…
Finally, commenting on a story about Walmart’s political activities yesterday, I wrote:There was news coverage this weekend about how GOP vice presidential candidate and Alaska Governor Sarah Palin went shopping at a West Virginia Walmart, picking up a number of items (like diapers for her infant son) while simultaneously trolling for votes.
She made the point while shopping that Democratic presidential candidate and Illinois Sen. Barack Obama doesn’t visit and understand places like Walmart and West Virginia. But it may be fair to suggest that Palin doesn’t entirely understand Walmart and some of its priorities – since she walked out of the store carrying products in two enormous plastic bags, not the reusable canvas bags that Walmart sells and that illustrate the company’s environmental agenda.
Which led MNB
user Kevin Tryon to write:Your obsession with reusable shopping bags is fogging your view of reality.
Reusable bags are great for regular shoppers, but stating that Governor Palin “doesn’t entirely understand Walmart and some of its priorities” based on the fact that she walked out the store with two plastic bags is more obtuse than tangential. If Walmart is so hip on reusable bags why do they even offer plastic bags? Are we all supposed to carry around reusable bags when traveling on business just in case we plan on doing a little shopping? Do you?
Once again, give me a break (or give it a rest).
I’ll take these in order.
Yes, I am a little obsessed with replacing plastic and paper bags with reusable canvas sacks. Guilty as charged. And cheerfully so.
I wasn’t being entirely serious about Palin’s shopping habits, though I do think it is reasonable to suggest that any politician who is getting criticized for her environmental record could have done worse than to use a canvas shopping bag.
Walmart offers other bags because not everyone has been converted yet. But if you watch the TV ads, that’s what they show…because it is consistent with the chain’s broader environmental priorities.
Yes, I do carry canvas bags in my car. All the time. As noted above, I’m a little obsessed.
And I’m afraid I’m unlikely to give it a rest, at least not for very long. Or at least not until I’ve convinced the rest of the world to do things my way.
I’ll just try not to be too tiresome about it.
But here’s a deal, Kevin. Just to make it go down a little easier…send me your snail mail address, and I’ll send you a limited edition MorningNewsBeat canvas shopping bag when they become available. Which will be any day now.