Supermarkets Cut Back on Discounts
New York City, Some supermarkets are cutting back on promotional discounts and are starting to offer everyday low prices like Wal-Mart and other discounters. Traditionally, grocery stores have weekly specials to attract consumers and keep their non-sale items at higher prices. Last year, however, traditional supermarkets controlled only 52% of U.S. grocery sales. Ten years ago, traditional grocery stores controlled 81% of sales. With the increase in discount suppliers, traditional grocery stores have had to compete with pricing.
Companies such as Safeway and Albertson’s still use sales to attract shoppers, but are increasingly closing the gap between everyday and sale prices. Grocery store companies believe shoppers today are busy and not as willing to search for good deals as they were in the past.
OfficeMax Names New Board Member
Itasca, Ill., Monte R. Haymon, retired chairman of Sappi Fine Paper North America, has been elected to serve on the OfficeMax board of directors.
Haymon was elected to the class of OfficeMax directors whose terms expire at the 2006 annual meeting. He will serve on the audit and executive compensation committees.
Winn-Dixie Sells Prescription Records
Jacksonville, Fla., Bankrupt Winn-Dixie Stores, Inc. is selling the records of thousands of customers who once filled prescriptions at 139 of its supermarkets that are closing.
In federal bankruptcy court yesterday, the judge approved the sale of prescription records to 10 companies for approximately $16.5 million. The competitors will also receive the inventories of the closing Winn-Dixie pharmacies at cost.
CVS Corp. bought the most, obtaining the records from 62 stores for $6.4 million.