[Vision2020] Winco Vs. Super Walmart

Sun Apr 22 13:59:40 PDT 2007

Mark,

If everything will remain "status quo", if dollars just get shifted about to
the more efficient retailer, why not allow a Super Walmart in? I guess I'm
failing to understand where all the controversy is: if your speculation is
true and Winco goes out of business, essentially nothing would change-not
even water use, which might conceivably go down, since we would be minus
both Winco and regular Walmart. So why is the Moscow Supercenter
controversial at all?

Jason

From: Mark Solomon [mailto:msolomon at moscow.com] 
Sent: Sunday, April 22, 2007 7:41 AM
To: Jason Hoetger
Cc: vision2020 at moscow.com
Subject: RE: [Vision2020] Winco Vs. Super Walmart

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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