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GOODING'S CUTS 10,000 PRICES TO EXPAND ITS SHOPPER BASE

ALTAMONTE SPRINGS, Fla. -- In a move to broaden its customer base, Gooding's Supermarkets here has lowered prices on 10,000 grocery items.The upscale chain, which has 18 stores in central Florida, implemented the program companywide this month after an experimental 5,000-item price reduction at some locations, according to Michael Cianciarulo, company president."It's done very well for us so far.

Russell Redman

January 29, 1996

3 Min Read
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RUSSELL REDMAN

ALTAMONTE SPRINGS, Fla. -- In a move to broaden its customer base, Gooding's Supermarkets here has lowered prices on 10,000 grocery items.

The upscale chain, which has 18 stores in central Florida, implemented the program companywide this month after an experimental 5,000-item price reduction at some locations, according to Michael Cianciarulo, company president.

"It's done very well for us so far. We tested it in Brevard County and had good results," Cianciarulo said.

Although the program is still young, it appears that more people are shopping at Gooding's, a local observer reported. "I haven't seen any hard numbers as far as increases in movement, but it seems like the customer traffic in stores is up," he said.

Price reductions are concentrated in dry grocery but hit all product categories, including frozens and fresh foods, Cianciarulo noted. Gooding's private label, Food Club, and brand-name items are both subject to the discounts, he said.

Promotion for the price-cut program, which is ongoing, involves point-of-sale materials, end displays and extensive print and broadcast advertising.

"It's being supported in stores with aggressive price tags to draw attention to the items," Cianciarulo said. "There are big price signs with comparisons to other retailers, banners outside and inside, and radio, TV and billboard ads." TV commercials have featured Jonathan Gooding, Gooding's chairman, the local observer said.

Gooding's adopted the lowered-price strategy to reach

more customers and to combat heavy double-couponing in the market, which has led many shoppers to hop from one store to another to get bargains, according to Cianciarulo.

"We've always been positioned or looked at as an upscale-quality merchant, which we still are. But along with that comes a high-price image, even though you are still competitive. [For example,] we carry a wide variety of specialty foods and stuff like that. So this [campaign] gives us a point to really deliver to the customer a competitive price," he explained.

"Everybody in our market is claiming to be an everyday low-price operator, and I want to make sure we're right in the ballpark," Cianciarulo said.

Indeed, competitors like Winn-Dixie Stores, Jacksonville, Fla.; Publix Super Markets, Lakeland, Fla.; and Albertson's, Boise, Idaho, which has a Florida division, have tenaciously promoted low prices, pushing Gooding's to boost its value appeal, according to the local observer. Winn-Dixie bills itself as the "Low Price Leader," while Publix and Albertson's pitch low prices plus service, he said.

"Gooding's has always had a niche in the market where they've catered more to the upper-class clientele. They feel that they needed to get more into the mainstream [customer base] to compete with Winn-Dixie, Albertson's and Publix," he explained. "I think they thought they were missing out a little on customer counts."

The 10,000 lowered-prices program will help bolster shopper loyalty and draw new customers, Cianciarulo said.

"It's a better way to relay better shelf prices to our true customers and not have all your dollars spent on double-coupon costs. It makes a lot more sense. I think [shoppers] get a better overall basket full of groceries, and a better customer shops your whole store rather than shops from a coupon standpoint."

About the Author

Russell Redman

Senior Editor
Supermarket News

Russell Redman has served as senior editor at Supermarket News since April 2018, his second tour with the publication. In his current role, he handles daily news coverage for the SN website and contributes news and features for the print magazine, as well as participates in special projects, podcasts and webinars and attends industry events. Russ joined SN from Racher Press Inc.’s Chain Drug Review and Mass Market Retailers magazines, where he served as desk/online editor for more than nine years, covering the food/drug/mass retail sector. 

Russell Redman’s more than 30 years of experience in journalism span a range of editorial manager, editor, reporter/writer and digital roles at a variety of publications and websites covering a breadth of industries, including retailing, pharmacy/health care, IT, digital home, financial technology, financial services, real estate/commercial property, pro audio/video and film. He started his career in 1989 as a local news reporter and editor, covering community news and politics in Long Island, N.Y. His background also includes an earlier stint at Supermarket News as center store editor and then financial editor in the mid-1990s. Russ holds a B.A. in journalism (minor in political science) from Hofstra University, where he also earned a certificate in digital/social media marketing in November 2016.

Russell Redman’s experience:

Supermarket News - Informa
Senior Editor 
April 2018 - present

Chain Drug Review/Mass Market Retailers - Racher Press
Desk/Online Editor 
Sept. 2008 - March 2018

CRN magazine - CMP Media
Managing Editor
May 2000 - June 2007

Bank Systems & Technology - Miller Freeman
Executive Editor/Managing Editor
Dec. 1996 - May 2000

Supermarket News - Fairchild Publications
Financial Editor/Associate Editor
April 1995 - Dec. 1996 

Shopping Centers Today Magazine - ICSC 
Desk Editor/Assistant Editor
Dec. 1992 - April 1995

Testa Communications
Assistant Editor/Contributing Editor (Music & Sound Retailer, Post, Producer, Sound & Communications and DJ Times magazines)
Jan. 1991 - Dec. 1992 

American Banker/Bond Buyer
Copy Editor
Oct. 1990 - Jan. 1991 

This Week newspaper - Chanry Communications
Reporter/Editor
May 1989 - July 1990

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