The supermarket price war in Southern California is about to re- erupt as Vons announces today that it's reducing the price of about 15% of its stock -- 5,000 items or so -- in 274 stores. Ralphs says
that it, too, will make "significant" reductions. Albertsons and Stater Bros. also have reduced prices on many products in recent months.
"It is almost like the old gas wars," cheers one
shopper, who says he's already noticing a 10% to 30% reduction on his register tape every time he shops (he's no doubt noticing a whole lot more, see story above). "People are lowering prices to get
my business."
Tom Keller, president of Vons, says that traditional grocers are responding to business they've lost to discounters. Andrew Wolf, an analyst at BB&T Capital Markets, concurs
but also points out that shoppers are spending less on impulse items. Keller agrees. Customers who used to spend $40 for a bottle of wine are now purchasing $20 brands, he says. At least it's not
Thunderbird.
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