Save-A-Lot to expand in urban areas
Eden Prairie, Minn. Supervalu’s discount grocer Save-A-Lot unit plans to expand in urban areas, according to a Bloomberg report. The move is intended to fill in gaps left after larger chains moved to the suburbs.
About half of Save-A-Lot’s stores will ultimately be located in metropolitan areas, the report said. The expansion is still in the planning phase.
Supervalu said in January it would double the number of Save-A- Lot locations in the next five years.
“Some of the urban markets have a dearth of supermarkets that are quality grocers delivering good, nourishing food at good prices,” said Bill Shaner, president and CEO of Save-A-Lot. “We offer a good solution for that opportunity and we are very focused on that.”
Save-A-Lot has stores in Philadelphia, Cleveland and Detroit, Shaner said. The chain would likely expand into Washington, D.C., within several years, the report said.
International is 4th growth priority
Target will operate stores internationally — some day — but for the time being the company contends it has such ample opportunities domestically that its growth efforts remain focused on American soil for at least the next three years. According to president and CEO Gregg Steinhafel, the company’s top priority is transforming its existing store base to the P-Fresh format, which features fresh food and other category upgrades. In addition, the company intends to continuing opening new U.S. stores in trade areas that make sense for the company’s existing formats. A third priority is to develop a smaller prototype that enables the company to take advantage of more urban opportunities that have great demographics. “We’re looking at downsizing Target to fit the environment where there are guests that have lots of money and love Target, so we’re focused on that as our third priority and then international would come well beyond that,” Steinhafel said.
Using ketchup to capture sales
Combine tomatoes, vinegar, high-fructose corn syrup and salt and what do you get? Ketchup, of course, but also the makings of an early-summer pricing battle involving a staple of summer cookouts. Target featured a 40-ounce squeeze bottle of Heinz brand ketchup in its circular this week for $1.59. That’s quite an aggressive price and would have been a good deal for shoppers except for the fact that Walmart decided it needed to reassert its pricing image and would use the Heinz brand to do so. As a result, Walmart marked down the 40-ounce Heinz to just $1 from its regular price of $2.42, as part of its price rollback campaign touted in promotional materials as involving, “thousands of rollbacks throughout the store.” Fortunately for margins at Target, as well as Walmart, most of the items featured in the rollback program are not subject to such extreme reductions.