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Safeway announced yesterday a broad price reduction program in its 119-store Colorado division.

“By offering thousands of new everyday low prices throughout the store, Safeway furthers its commitment to providing customers with a more affordable and convenient one-stop shopping experience,” the announcement says, adding , “Shoppers can easily find items in store with the new everyday low prices through Safeway’s redesigned yellow shelf ‘Tags’ which show customers the old price crossed out and the new everyday low price. The new yellow tags also display the Club Card price.

“To promote Safeway’s in-store price reduction program, the company is launching an integrated advertising campaign that features television, radio, online, outdoor and print throughout the area.”

The announcement also says that “Safeway will continue to offer customers the added values they’ve come to trust such as great weekly Club Card savings and the finest quality perishables. Safeway is so confident in the quality of their fresh produce and tender Rancher’s Reserve beef that it will refund a customer’s money and replace the item for free if the customer is not completely satisfied.”
KC's View:
Interesting timing for this announcement, considering that Safeway is looking at the possibility of a strike by its Denver-area employees in less than two weeks.

This is yet more evidence that no matter how hopeful some folks are about the economy, in the foreseeable future many (if not most) people will be acting from a recessionary mindset.

It will be intriguing to see, however, how Safeway balances the low-price message with the high-quality message of its Lifestyle stores. I’m not telling them anything they don’t know...but at the very least, it strikes me as a balancing act that will require a certain level of skill.