Dive Brief:
- In the wake of the government shutdown, Wegmans is temporarily slashing prices to help shoppers with Supplemental Nutrition Assistance Program (SNAP) benefits cope during the two-week period between February 16 and March 2, when the next round of SNAP benefits will be released to recipients, the Ithaca Journal reported.
- Some of the discounted items include five-pound bags of white potatoes for $1.50, red seedless grapes for $1.99 per pound, a family pack of 80% ground beef for $1.99, 12 and 16-ounce packages of pasta for 59 cents and iceberg lettuce for 79 cents each. To receive the discounted pricing on many items, shoppers must have a Shoppers Club card.
- “One of our United Way partners let us know there are people still dealing with the consequences of the recent government shutdown,” Chairman Danny Wegman said in a statement to the Ithaca Journal. “They asked if we could help. In particular, they called out the fact that February SNAP (Supplemental Nutrition Assistance Program) benefits were paid in advance, and that this timing created a challenge in February for some recipients.”
Dive Insight:
Wegmans is reaching out to customers affected by the government shutdown to help ease their grocery bills, particularly for those who receive SNAP benefits. This is an unsurprising move for Wegmans, which has a reputation for being a family-focused, customer service-oriented brand that values its role in the communities it serves.
Although it is a temporary move, dropping prices in a business that already suffers from tight margins may prove a tough proposition for Wegmans. Whole Foods recently indicated that it had to raise its prices after spending several months trying to lower them to change the store’s pricey image. Experts in the industry have also indicated that food prices are on a continued climb due to increased manufacturing costs. Limiting the price drop to a two-week period will help the store mitigate lost profits while still building some good will and favor among shoppers. It may also draw consumers who don’t normally shop at Wegmans. The increase in sales volume could offset the price drops enough to prevent significant margin damage.
Although not explicitly related to the shutdown, Weis Markets recently lowered prices on over 7,000 products in its "Low, Low Price" program that is intended to help the grocer compete with Wegmans, a local rival, and Giant. Weis is also aiming to snag business from discount retailers like Aldi.
A number of other food outlets have taken steps to assist shutdown-affected workers. Walmart provided $300,000 to support Feeding America’s shutdown response efforts, while Publix donated $1 million to United Way. Food Lion donated $18,000 in food and gift cards through local partners and 1,500 boxes of food to the Maryland Food Bank, and Tyson delivered 85 metric tons of chicken to the D.C. metro area for federal workers during the shutdown.
For Wegmans, which regularly supports its communities in times of need with jobs, food and participation in recovery efforts, the effort to slash prices — though temporary — exemplifies why it remains one of the top grocery brands in the nation.
