PRICE CHOPPER COMMITS TO LEASING

JULIE GALLAGHER

SCHENECTADY, N.Y. -- For Price Chopper Supermarkets here, it's lease, not buy, when it comes to tractors in its transportation fleet.

Thus, next March, it will enter into its latest leasing agreement with Fort Lauderdale, Fla.-based First Fleet. Since 1998, First Fleet has been the leasing agent for tractors for the 106-store Price Chopper, which operates four warehouses.

Price Chopper last owned its entire fleet of 70 tractors in 1998; they were sold off by 2002.

Today, Price Chopper leases its entire fleet of 64 vehicles, which travel 11 million miles per year.

"We've reduced our cost of putting trucks on the road," said Bob Doyle, vice president of transportation, Price Chopper. Doyle could not provide specific numbers. "The leasing alone is not responsible for the savings," he said. "It's been a combination of leasing and changing our operations."

To make sure its transportation department remains as cost-effective as possible, Price Chopper reviews its cost of ownership, vs. leasing tractors every year, said Doyle.

"We price tractor [leases and ownership] and turn the information over to our finance department. They make an ownership decision. Then in a separate process we review the costs associated with operating both owned and leased vehicles. We keep the two processes separate so we don't lose sight of the overall purpose."