inStorebuyer - June 2012 - (Page 28)

Value is king for bakery and deli products at leading instores in the Phoenix marketplace. by John Unrein Pricing is the new battleground for the supermarket bakery/deli business in Phoenix, a marketplace that has suffered a dramatic shakeup since the height of the recession in 2008. Kroger-owned Fry’s Food Stores is launching a “New! Lower Prices” campaign this spring, including specials on everything from eight pieces of fried chicken for $6.99 to 12-count Memorial Day cupcakes for $5.99. Even AJ’s Fine Foods, one of the city’s top gourmet grocers and part of the Bashas’ chain, is entering the pricing fray with $5 deep discounts on 8-in., double-layer filled cakes (priced at $19.99 apiece) and $2 discounts on its Sandwich of the Month program ($6.99 for a signature sandwich featuring Columbus Deli meats, along with pickle, chips or salad, and a gourmet chocolate). AJ’s, with 13 locations in Phoenix and Tucson, introduced a new line of specialty Italian food products from Visconti (jarred olives and artichokes, pesto, pastas and more) at 25% off during the month of May. As recently as five years ago, Phoenix was regarded as a shining star of America’s retail scene, as populations and incomes were rising fast, and the city’s economic future was hotter than a habañero pepper. Walmart introduced its innovative Marketside concept here in 2008 with four 16,000-sq-ft locations, where shoppers dashed in for roasted chicken, artisan bread and other fresh and prepared foods in a flash. Last October, Walmart shut them all down. Now, value concepts are moving into Phoenix. WinCo Foods, on April 1, opened its first two discount supermarkets A Price War in Phoenix in Arizona — one in Phoenix and one in Glendale. Each Arizona store is larger than 90,000 sq ft in size and will employ about 200 associates. WinCo stores feature a “Wall of Values,” where special low pricing is available on a variety of popular items such as fresh bread.  “We look forward to having our new customers come in and see what makes WinCo Foods unique as we work to offer good value and to save them money on their grocery purchases,” says Michael Read, a WinCo spokesperson. A competitive landscape No one has ever doubted the competitiveness of the Phoenix marketplace. Kroger (Fry’s), Safeway, Walmart, Bashas’, Albertsons, Fresh & Easy, Costco, Trader Joe’s, Whole | 28 | inStorebuyer | June 2012 |

Table of Contents for the Digital Edition of inStorebuyer - June 2012

inStorebuyer - June 2012
Editor's Note - How Consumers Eat
Table of Contents
Frontline News - CSM to Divest Bakery Supplies
Frontline News - Register for All Things Baking
Frontline News - Chang wins Supermarket Chef Showdown
Frontline News - Haggen Hires Bakery Director
Frontline News - Kings Unveils Innovative Store
Frontline News - Culpitt Ltd. Wins Queen’s Award
Frontline News - Consumers Watch Sodium Intake
Food Serivce Retail - Minimize Sandwiches for Maximum Appeal
Baking & Decorating - Decorate to Win
Bakery Development - Seek New Opportunities with Pies
Deli Development - Specialty Cheese Broaden Appeal
Foods of the Decade
A Price War in Phoenix
Food Safety - Labeling Regulation Poses Burden
Health & Nutrition - Weight Loss Trends
Cheese Corner - Teaching Cheese
Product Trends
Product Showcase
Marketplace Network
Ad Index

inStorebuyer - June 2012