[Vision2020] Winco Vs. Super Walmart

Sun Apr 22 07:40:55 PDT 2007

Jason,

You are correct that at the end of the day we'd have the same market 
component. My reference to competition and choice was in response to 
the previous post by Donovan that somehow we could have two large 
discount grocers competing in the long run. Let's remember, though, 
that a SuperWalmart has other profit centers than a grocery 
department that Winco, as an example, does not have. The Palouse is 
an isolated market. It is unlikely that a large increase in customers 
and shopping dollars would arrive in Moscow/Pullman if a SW opened. 
Instead, we would see a shift in where existing dollars are spent 
within the commmunity.

m.

At 7:16 AM -0700 4/22/07, Jason Hoetger wrote:
>Mark,
>
>Assuming you are right about a Moscow Super Walmart totally ruining 
>Winco (probably unlikely), Moscow would have one big discount grocer 
>(Walmart), a Safeway, and a Rosauers-exactly what we have now. Where 
>is the lack of competition? Seems like we'd have at least as much 
>choice as we do today.
>
>In any case, it seems unlikely that Winco would simply shutter its 
>doors and leave town. Winco has successfully competed against Super 
>Walmarts in several other markets. Winco and Walmart did not get to 
>be large supermarket chains without knowing plenty about expansion 
>and competition. I wouldn't shed any tears for Winco just yet.
>
>Jason
>
>From: vision2020-bounces at moscow.com 
>[mailto:vision2020-bounces at moscow.com] On Behalf Of Mark Solomon
>Sent: Saturday, April 21, 2007 8:38 PM
>To: Donovan Arnold; Chasuk
>Cc: vision2020 at moscow.com
>Subject: Re: [Vision2020] Winco Vs. Super Walmart
>
>Donovan,
>
>That assumes that there is enough customer base to support three, 
>count them, three discount grocers in the Moscow/Pullman area (I'm 
>assuming for the moment, not happily, but assuming anyway that the 
>Pullman SuperWalmart will eventually be built). If/when the Pullman 
>SW opens, Winco will take a big hit as Pullman shoppers stay closer 
>to home. There's no reason to assume someone in Pullman going 
>discount grocery shopping after a SuperWalmart opens in Pullman 
>would drive to Moscow to shop at Winco or at a Moscow SuperWalmart. 
>I have no numbers on how many WA residents shop at Winco but from 
>eyeballing the tags in the parking lot I'd hazard a guess that it 
>could be up to 40% of the total at Winco. Let's say a Moscow 
>SuperWalmart opened competing for the 60% of the discount grocery 
>shoppers left and say each got half: that's 30% of the current 
>customer base for Winco. Seems to me that the final outcome is two 
>SuperWalmarts, one in Moscow, one in Pullman and no competition. Or 
>choice.
>
>Mark
>
>At 5:37 PM -0700 4/21/07, Donovan Arnold wrote:
>
>Chas,
>
>
>
>I actually agree with you that Winco can be cheaper than a Super 
>Wal-Mart. The bulk food items at Winco's bins are cheaper than 
>anything Super Walmart has to offer. Also, their bread is fresher, 
>cheaper and in greater variety. The quality of meat is actually 
>better too.
>
>
>
>Most of the packaged food goods, Oreo's, M&Ms, and name brands are 
>going to be within pennies of each other at either store.
>
>
>
>However, where I find the savings is when I purchase non food items, 
>like paper towels, toilet paper, meds, window cleaner etc. All of 
>that other stuff is much, much cheaper.  Further you can get 
>everything in one trip, clothes shopping, food shopping, pharmacy, 
>haircut, oil change for your car, and get some lunch too. That saves 
>you time and gas, and time and gas saved is money left in your 
>pocket. Wal-Mart also bags your groceries for you.
>
>
>
>I think it would be a smart move for Moscow to have two discount 
>grocery stores in the area. Winco can as it is, rise their prices 
>10% to 20% and there is no viable option in the area to go to and 
>still get lower price, people are forced to pay it. If you had 
>another super discount store you have a competition going like they 
>do in Coeur d ' Alene.
>
>
>
>
>
>As to the Bees:
>
>
>
>I agree that no cause for the problem has been agreed upon, but I 
>don't think that it is disputed that bees are disappearing from 
>farms, we know this to be true and the cause for concern.
>
>
>
>Best,
>
>
>
>Donovan
>
>Chasuk <chasuk at gmail.com> wrote:
>Winco is cheaper than any other grocery store in town, by a huge
>margin. I've recently shopped at a Super Wal-Mart, and it was not
>cheaper than Winco. I shop at Costco regularly, and it isn't cheaper
>than Winco, either.
>
>Before I get replies saying "but I bought X at Y, and it was cheaper
>than Winco," let me save you the trouble: I already know that some
>items are cheaper elsewhere. However, overall, for a family or
>individual of average shopping patterns, Winco is far cheaper.
>
>And the jury is out on the bee threat; some dispute whether it even
>exists. I've read arguments from both sides, with both parties
>equally qualified to hold an opinion.
>
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