Hi-Value Case

Operating on very thin profit margins, players in the supermarket industry traditionally either focus on a premium segment or follow a discounter strategy at the low end. Premium players address educated and more price elastic consumers who value healthy, natural and organic food; the share of perishable items for these players is normally distinctly higher. Players that focus on a discounter strategy offer a higher share of simple necessity items and value price competitiveness over premium features like healthiness or organic origin. Independently of the focused customer group it is imperative for players in the supermarket industry to be cost efficient and optimize operations

Rivalry- Grocery Checkout’s main competitors are Loblaw’s and Valu-Mart. Their proximity to the University of Western Ontario makes them accessible to the students, but by public transportation or their own cars. The

In 1975, Hi-Value Supermarkets became a division of Hall Consolidated, a privately owned wholesale and retail food distributor. In 2002, Hi-Value had sales of $192.2 million, which was the smallest out of the three supermarket chains owned by Hall Consolidated. Although Hi-Value is considered small against industry standards, they were the number one or two ranked supermarket chain in each of its trade markets measured through market share. The primary problem that Hi-Value has developed is that they are the highest priced compared to the competitors within the region. The Hi-Value Supermarket Shopper Interview Results (Exhibit 7 in case) demonstrates this through the question “Liked most about other regular store,” the most popular answer across the board was “Price.” So what is Hi-Value supposed to do?

The Retail Category I have chosen is ‘Electrical Goods’. This category consists of retailers who specialise in: Computer hardware; computer software; white goods; brown goods and audio-visual. I have

By choosing to implement “Everyday low-pricing” strategy to all Hi- Value Supermarket products in Centralia, Missouri, Hi- Value would begin direct competition with Harrison’s via most reasonable prices. According to the Exhibit 6 found on page 506, data shows that, Harrison’s is a market leader with 36 percent of customers agreeing that Harrison’s has the most reasonable prices , while customers rated Hi- Value with only 7percent . Also in this data we can see that Hi Value scored lowest on best overall variety with 2 percent while Missouri Mart came in at 74 percent. With 13,500 households retaining an average income of a mere $36,000/ year,

Researchers with the RAND Corporation examined data from studies on civilian-based grocery chains as well as previous studies on commissary shoppers. They concluded that because of a combination of factors, including the availability of other stores and the distance many commissary shoppers travel to get there, a price increase would drastically cut the amount of money shoppers spend and the number of times they come to commissary stores. The result would be lower revenue for the commissary and, potentially, continued budget shortfalls (p.

Nevertheless, the majority of customers are very satisfied with the amount of serving along with the quality of their meal as well as the price paid. The strategy of being a low priced high value added has seen problems due to lack of customers which is affecting the bottom line drastically. This inevitable circumstance has put a hold on operations and started an investigation upon various neighboring competitors and their own strategies.

5. Offering fresh and prepared food. Prepared food and fresh offerings have become increasingly demanded within the marketplace, and providing them can be highly profitable for firms, considering that sales for these products are growing at three times that of center store categories. Furthermore, the perishables department and prepared foods offer significantly higher profit margins than standard center-aisle offerings and also lead to improved consumer perception of the store in general.

The tenant structure of the shopping center is an important factor in ensuring rent is adequate to make the project viable. The fact that Philipp conceded the hypermarket could have a negative effect on the overriding success of the project. ECE strategy typically relied on these large self-service retail stores. Hypermarkets are very desirable to customers since the warehouse structure enable the stores to offer a wide variety of products (i.e. fresh food, beverages, home supplies, electronics, clothing, car accessories, garden furniture etc.) at discounted prices. This lack of a hypermarket must be offset by assurance and

produced, brands and the amount of choices that are on the shelves as well as the amount and

The retail industry is highly competitive, with few barriers to entry. Each Company competes with many other local, regional and national retailers for customers, associates, locations, merchandise, services and other important aspects of the Company’s business. Those competitors include other department stores, discounters, home furnishing stores, specialty retailers, wholesale clubs, direct-to-consumer businesses and other forms of retail commerce. Some competitors are larger than JCPenney, have greater financial resources available to them, and, as a result, may be able to devote greater resources to sourcing, promoting and selling their products.” There are many factors that characterize competition, including advertising, service,

 Illustrates low prices and at the same time, not portray a cheap image to consumer.

The retail chains offer footwear, sporting goods, clothing, sportswear, home ware and accessories. The group operates in three segments namely Apparel, Home and Central Services.

My research will primarily focus on on the demand of supermarkets on Oʻahu. Supermarkets are a strong demand on our island and this paper will review the demand of new markets and their price fluctuations in the past 10 years. Market motivation will play a key role in potentially explaining the demand and competition within supermarkets on Oʻahu. Too further broaden the explanation, included in this report are the demand of supermarkets such as Safeway, Target, and Walmart and the competition they share within each other. The information from these stores are in connection to the demand of supermarkets on Oʻahu. Although the entirety of supermarkets on Oʻahu will be analyzed, this report

They had more than 3500 exclusive or company owned stores and in a growing market the power of the network of stores was extremely strong. They had great potential as a sales network and it was possible also to expand more into the rural areas going forward. And so it was possible to acquire