Rochester, N.Y. Wegmans Food Markets Inc. has begun to lower prices on hundreds of items throughout its 72 stores. The lower price strategy went into effect Thursday in response to the weak economy and the company's expectation that its own costs will drop.
“We are lowering hundreds of prices in anticipation of our costs dropping in the future, and we intend to bring more prices down as soon as we can. These are uncertain times. We know our employees and customers are very concerned, and so are we. During difficult times like these, it’s OK with us if we make a little less money," chief executive Danny Wegman and president Colleen Wegman said in a joint statement.
Many of the items targeted for price cuts are Wegmans brand, and will be in the bakery, meat, produce, delicatessen and general-grocery departments.
“We can be more aggressive with reductions because we have better access to detailed information on the factors that determine costs for those items,” said Jo Natale, director of media relations, Wegmans.
Natale declined to disclose the impact of the cuts on Wegmans’ bottom line, but 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.
Over the next week, Wegmans will begin to highlight the price cuts with signage in stores.