Everything from eggs to shampoo to produce will be reduced, another reflection of the struggles that traditional grocery chains are having in a market increasingly dominated by lower-price competitors like Costco and Walmart. (Why do you think the grocery workers union made such an effort to keep Walmart out of Chinatown?) Price reduction takes effect today. From the OC Register:
Compared to 2008, the new low-price program represents thousands of more items with "deeper cuts" in prices, [spokeswoman Kendra Doyel said]. The supermarket chain is promoting the "get real" price strategy with two 15-second TV commercials airing Wednesday. Ralphs declined to provide capital costs tied to the revamped low-price program.
Price reductions will vary per product. For example, the price of a loaf of Sara Lee wheat bread will be 50 cents less at $4.49. A dozen large Grade AA eggs will sell for $1.99, down from $2.39, Doyel said. When asked if Ralphs was trying to match low prices found at rival stores, Doyel declined to comment.
Meanwhile, Walmart has announced that it will lower its grocery prices nationwide by $1 billion. Sounds like a big number, but the retail giant had $145 billion in grocery sales last year. From DJ:
The plan is for lower prices to be in the food and consumables areas, with customers then heading to other parts of the store, like apparel and general merchandise, Chief Merchandising Officer Duncan Mac Naughton said at an industry conference. "Some key momentum is building inside Wal-Mart U.S."