All-Out Price War Between South Florida Supermarkets

Miami (CBS Miami) - This is a full-fledged war between grocery stores in southern Florida. They are lowering the price and allowing you to enter their store

Winn Dixie's spokesperson Bill Nasshan said, "We decided to take hundreds of items and lower prices," and insisted on doing so, people decided where the best deal was You will not have the pressure to pin down. "

CBS 4's Ted Scouten made several price comparisons with some major items to determine who has the best price.

He compared the prices of Wal-Mart, Winn-Dixie, Publix. When the total is entered, the lowest price of Wal-Mart is 20.37 dollars, Winn-Dixie was 24.07 dollars, and Publix was 26.56 dollars.

Evie Chitty, spokesperson for Wal-Mart, says, "We offer low prices everyday, so our low-cost model is coming from the low-cost, day-to-day operating model of the Wal-Mart store."

"Our shopkeepers have autonomy right to check local and shop competitors.They have autonomy right to lower the price to confirm that we are actually price leaders. "

In addition, Publix pays close attention to the game, posting a sign near the front door, Publix pointed out that it sells cheaper products than Wal-Mart. They have free items "BOGO" or "Free to buy one". I also have Winn-Dixie

Publix spokeswoman Nicole Krauss says: "Every week BOGO has more than 40 items, and on holiday weeks it takes more time to celebrate with family and friends, there are at least 60 items in Publix's BOGO."

"To maximize cost savings we can prepare competitor coupons, manufacturer coupons, Publix coupons, and using BOGO will save a lot of money," said Mr. Klaus.

The store says that the best way to save money is to see sales in advance. Look for a special offer to buy one for free. When you plan ahead for your grocery trip in advance, you are likely to find the best place for a better deal.

Another way to ensure maximum cost savings is to download all store apps and see if there are any special coupons that will help you save money.

The supermarket industry is very competitive. The main reason for competition in the supermarket industry is strength, because price competition always happens between supermarkets. Based on the price war, the winner can earn more market share. For example, when Aldi entered the UK supermarket industry, he gained the best discount on several market shares. Since the product substitute products in the supermarket industry are a major threat, the threat of substitutes is considered to be high. For example, Aldi competes with companies such as Asda and Tesco to provide alternative means. This may boost the low price foods of both companies.

First, as a characteristic of the oligopolistic market, the supermarket competes as a price as a price determiner and attracts greater market share. In the last price war, Tesco reduced the range of product prices, the discount price is about 3% to 25% of each product; this will help Tesco increase the market share of 12% in 8 weeks . Price supermarkets always occur between UK supermarkets, as supermarkets announce price reductions and other supermarkets follow. For example, Tesco announced a price cut of 1.2 billion pounds as Asda's "rollback" plan reduced the product price by about 500 million pounds. However, the CC found that the supply price difference between the largest retail chain and the smallest retail chain is on average about 11% to 13%. This means that the stock price of the small supermarket is higher than the stock price of the giant. Large supermarkets have lower management costs. This means that small supermarkets always have no price competitive advantage.

Recent price competition between the mobile phone industry and supermarkets is a good thing for consumers and each industry. Price war is said to allow customers to save money, increase consumer utility, and lead to intense competition. However, customers only benefit from price competition in the short term, but the situation will change over the long term. Price war caused price declines, but it is important to evaluate the impact of price declines on consumer expenditure. The basic principle of this paper is to study the impact of price war between mobile phone industry and supermarket.