Published on: November 7, 2008Wegmans announced yesterday that it is responding to two current trends – the economic strife hitting so many families, and anticipated lower costs for raw materials – by imposing price cuts on hundreds of items in its 72 stores. The cuts are in such departments as bakery, meat, produce, deli and grocery, with many of them in Wegmans’ private label lines.
According to the announcement, “the price cuts are not one or two-week promotional specials; in line with Wegmans’ consistent, low price strategy, these prices will be in effect for an extended period of time.”
Danny and Colleen Wegman released the following statement: “During difficult times like these, it’s okay with us if we make a little less money. And, as always, we are committed to offering the lowest price in the market on the items most important to families.”
“Though the lower costs we expect in 2009 haven’t arrived yet, we think it’s necessary to lower prices now,” added Jo Natale, Wegmans’ director of media relations. “As a family-owned business, we can accept leaner profits in order to put employees’ and customers’ needs first.”
Natale said that based on anticipated sales of these products, the total value of price cuts to consumers would amount to $12 million on an annualized basis. For an average consumer shopping for a family, the savings could amount to as much as $40 to $60 a month.
- KC's View:
- This is a perfect example of what I’ve been talking about a lot here on MNB in recent weeks – the importance of both value and values, and of communicating both to customers with clarity and consistency.
It also correctly anticipates the likelihood that a lot of shoppers are going to wonder why, if costs are going down for raw materials, prices are not coming down for a lot of products. Like it does so often, Wegmans is getting ahead of the curve.