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Supermarket chains are struggling more than ever. Not only are they fighting the effects of a recessionary economy, with ever increasing food prices, but their competition is hurting their bottom line. Target and walmart are now expanding their food sections. Places like BJs and Cosco are taking sales away and there is a quickie mart on every corner that is slowly grabbing the sales of high profit snack and beverage items.
Supermarkets need to downsize and restructure their business approach. The days of a big chain opening some mega store and being guaranteed a profitable location are gone
it seems like the unions are killing them. they cant afford to keep low prices and high paying employees.
I noticed pathmark was in trouble when they downsized thier circulars and they didnt even advertise items in thier own stores. for example, I buy taster choise gormet and it costs about $10.59 a bottle. I grabbed one the other day and it was HALF OFF! I paid $5.29 for it. it wasnt in the circular nor was it advertised on the shelf tag. I walked out with 7 containers.
it seems like the unions are killing them. they cant afford to keep low prices and high paying employees.
I noticed pathmark was in trouble when they downsized thier circulars and they didnt even advertise items in thier own stores. for example, I buy taster choise gormet and it costs about $10.59 a bottle. I grabbed one the other day and it was HALF OFF! I paid $5.29 for it. it wasnt in the circular nor was it advertised on the shelf tag. I walked out with 7 containers.
It's just a failing business model at this point. Too small to compete with Target and Walmart, too big to compete with 7-11, and not fancy enough to deal with Uncle Guiseppe's and Whole Foods.
I don't think unions have anything to do with it. It's just the fact that they don't move enough volume for the small margins that Target and Walmart are making them accept. However, they don't have the niche market to support high profit margin products like expensive cheeses and meats.
not for nothing but pathmark, at least the one by me, has a huge selection compared to walmart, target and guiseppes. thier varities differ with everything from cereal to soda to maxipads to cheese. I still go to shaftmark but for things I cant find at wallyworld.
not for nothing but pathmark, at least the one by me, has a huge selection compared to walmart, target and guiseppes. thier varities differ with everything from cereal to soda to maxipads to cheese. I still go to shaftmark but for things I cant find at wallyworld.
Walmarts and target wont compete on variety but a supermarket cant survive on just fill-in purchases. As NYEconomist said, they cant survive on their paper thin margins unless you are buying the items that bring them in profit. The profitable items are not basics...and people are shopping for those items at the warehouse stores
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