Feb 3, 2014 11:21 PM by Rebecca Taylor

Food City answers to zip code pricing

TUCSON - After our story on Food City's ad specials aired, we received this statement from the grocer's Director of Communications.

"The Food City weekly ad is pretty aggressive to start with, and the ad that most shoppers receive in Tucson is the one that's most widely distributed. However, in some neighborhoods, we may have a store location that's facing a tough competitor across the street, or maybe the grand opening of another store. For this store(s), we'll run a version of the ad that's pretty much just like the main ad in Tucson, only with a few of the hottest ad items priced even more aggressively. These super-aggressive prices are typically at or below our cost, and sometimes significantly below cost. We can justify these losses in a few targeted areas where it's especially competitive, but not chain-wide."


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