News

Weis Price Freeze Impact Could Come Later, Expert Warns

July 14, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

Weis Markets’ planned 90-day price freeze on 1,600 staple items could bring stability to the Sunbury, Pa.-based retailer's private label sales in the short term but also might mean a PL price spike once the freeze ends that could turn off consumers, warns Paula Rosenblum, managing partner of Retail Systems Research.



Weis Markets’ planned 90-day price freeze on 1,600 staple items could bring stability to the Sunbury, Pa.-based retailer's private label sales in the short term but also might mean a PL price spike once the freeze ends that could turn off consumers, warns Paula Rosenblum, managing partner of Retail Systems Research.

 

"They [Weis Markets] believe their customers are worried about inflation," she says. Yet while news reports spotlight inflation worries, gasoline prices have been dropping in recent weeks, lessening cost pressures on processed foods and thus giving Weis some latitude to enact the price freeze.

 

The negative effect could come after the price freeze is over, however, if prices start to rise for private label goods at that point. “At the end of the day, any time prices start to rise, it has an impact on private label," Rosenblum says.

 

The price freeze will be effective through Oct. 8. The freeze is being promoted in Weis Markets' current circular, store signage and in television and radio ads.

Did you enjoy this article? Click here to subscribe to Private Label Buyer.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

July 2014 New Food Products

This month’s new food products include coffee, energy bars, healthy pizza for kids, specialty sauces, Greek yogurt dip, gelato, puffed grain snacks, snack seasonings, and much more.

Podcasts

Coming with a clear, comprehensive plan was the key to success for Longo Brothers Fruit Markets when the grocer decided to roll out a two-tier private label strategy, Jenny Longo and Robert Koss tell PLBuyer editor Chris Freeman in this podcast.

More Podcasts

Private Label Buyer Magazine

PLB July 2014 cover

July 2014

The July 2014 issue of Private Label Buyer includes articles on changing retail dynamics as well as category insights on store brand cosmetics and paper products. Check it out today!

Table Of Contents Subscribe

Innovation

Which private label category is currently seeing the most innovation?
View Results Poll Archive

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

PLB Marketplace

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40pxgoogle+ icon 40px