From Deseret News archives:
Supermarkets slam Wal-Mart
Lower labor costs at heart of strikes by grocery workers
An inveterate bargain hunter, Ranson used to chase down the best grocery deals at three stores: her local Kroger in Cross Lanes or down the road at a Fas Check in Dunbar and at a Poca Supermarket in Poca.
Now she makes one trip a week, to the Wal-Mart Supercenter, which opened five years ago a mile and a half down the road and across Interstate 64 from Kroger.
Ranson, who is 57, spends about $90 for herself and her husband. She estimates that she saves $40 to $50 off what she'd pay at the supermarket. "Kroger's prices are too high on a lot of stuff," she said. "I figure $100 ought to be enough to feed anyone for a week."
Officials at Kroger and the nation's other dominant supermarket chains Ahold, Albertsons Inc. and Safeway Inc. cite competition from Wal-Mart Stores Inc. and other box stores moving into the grocery business as a reason to hold the line on labor costs.
Similar struggles are expected within the next six months as UFCW contracts expire in the Phoenix and Washington, D.C., areas.
"Box stores are a very real threat," said Archie Fralin, a Kroger spokesman in Roanoke, Va. "Their lower labor costs make it imperative for us to manage costs. That's just a reality."
Wal-Mart doesn't break out earnings by division, so it's hard to calculate how much food it sells. But analysts say in just 10 years it has become the biggest player in the grocery business, last year capturing anywhere from 5 percent to 15 percent of the industry's $680 billion pie.
Traditional supermarket sales have dropped about 3 percent in the past year, estimates The Food Institute, a New Jersey-based trade group.
"The supermarket chains are still profitable, but executives see their market share down more than 5 percent over five years, and they're frightened," said George Whalin, president of Retail Management Consultants in San Marcos, Calif.
Lower labor costs for nonunion workers make up part of the advantage of box stores like Wal-Mart.
Comments
- Jazz outlast Pistons in overtime 11:40 p.m.
- Angel placed atop temple 11:40 p.m.
- Kristine Frederickson: Thanksgiving 11:39 p.m.
- Becky Thomas: romantic spots 11:39 p.m.
- YSAs hold tournament 11:38 p.m.
- Chad Lewis gives great message 11:38 p.m.
- Lalas: L.A. is the favorite 11:38 p.m.
- Seattle a model for MLS 11:38 p.m.
- Church News viewpoint: 'This day' 11:37 p.m.
- Pa. singles clean bowling alley 11:37 p.m.
- Glenn Beck to enter politics?
- Can BYU throw vs. Air Force?
- Cougars cruise to victory in Hawaii
- Huntsman blasts media over trip
- Christian leaders not backing down
- Police link alcohol to murder
- TCU still has a chance
- Orem man acquitted in tot's death
- Religion cited in deportation fight
- Hall breaks BYU record with win
- Buttars wants to limit gay rights laws
192 - Palin plans tour stop in Utah
173 - Glenn Beck to enter politics?
124 - Palin's book shows she's unqualified
122 - Officer cleared in Cardall Taser case
103 - BYU cuts Women's Research Inst.
100 - Jazz finally win in San Antonio
98 - Hall breaks BYU record with win
93 - Utes knock off rival Aggies
93 - Huntsman pleased with Obama
87
There's a lot of reason to leave your plastic home as you shop:
I don't pretend to be an expert on global warming. I've met with...
She's a babe alright. Don't see her posing for any of those girly magazines.
Good for them. Let's support their efforts and respectfully make our voices...
This man didn't even show up to his own 9/12 rallies. Beck is a fool...
I have to say the rivalry game looks pretty good for next Saturday. Utah may...
It's good to see Bennett's/Hatch's true colors regarding health care in...
I have watched the game a couple of times now and can not find two of the...
They play Sunday night not tonight.
If you do not want gay marriage in temple, that is fine. However then,...
Respect your opponent. If you say he's inferior, and he beats you, what does...
Women athletes will never be on a par with men until they knife, pistol-whip,...



You can be the first to comment on this story.