RAINBOW FUELS LOW-PRICE POSITION WITH GAS SERVICE

STEPHANIE LOUGHRAN

MINNEAPOLIS -- Rainbow Foods recently began rolling out fuel centers to its supermarkets, starting with the retrofitting of a store here near its headquarters last month.

The company also opened a new Rainbow Foods & Fuel in Amarillo, Texas, two weeks ago with an eight-pump fuel center, according to Shane Boyd, spokesman, Fleming, Lewisville, Texas, which owns the Rainbow Foods banner. It's also the first Rainbow unit in the Amarillo market, he said.

"It is added sales you gain from the fuel center plus incremental sales you gain from inside the store," Boyd said in explaining why the company has begun adding gasoline service to its stores. He also pointed out to SN that the fuel centers are "another way to reinforce the stores' low-price position in the market."

Rainbow extends its "everyday low price" (EDLP) concept to the fuel center by offering 5-cents-per-gallon discounts at the pumps. Customers can obtain free key tags at the store to receive discounts every time they purchase fuel at the retailer.

No enrollment is required to obtain the key tags. Since Rainbow practices the EDLP concept, Boyd said the discount initiative is not a part of a larger loyalty card program.

Boyd said he expects Rainbow to roll out other fuel centers in the future, but declined to give further details.

The new Amarillo Rainbow Foods & Fuel also houses a signature "wall of values" for customers to grab bargains on certain products.