Jewel, the largest grocery chain in Chicago, with around 185 stores, has seen its leading share of the roughly $12-billion local market reduced in recent years by the aggressive expansion of Wal-Mart Stores Inc., which often sells grocery items up to 15% cheaper.Perhaps Dominick's pulled out of their old 79th Street location too soon!
"This is a significant move," said Bill Bishop, a Barrington-based grocery consultant. "It's an expensive move, but it shows the company recognizes that it was vulnerable from a price point."
Bishop said the move will force Jewel's long-time rival Dominick's, the No. 2 grocer in Chicago with about 85 stores, to either lower prices or likely lose customers.
Dispatches from Chicago's south side.
Friday, April 24, 2009
Jewel cuts prices; will Dominick's follow?
I made a passing reference to Jewel's in a post about Chicago's unemployment rate. Today Tribune quotes a consultant who ponder the response of another major Chicago grocer:
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