WINN-DIXIE AD RIPS WAL-MART PRICES

MICHAEL SLEZAK

MIAMI -- The Winn-Dixie division here recently took aim at Wal-Mart with a newspaper advertisement comparing the health and beauty care prices of the two retailers.

The advertisement, which appeared in The Miami Herald on Aug. 4, compared Winn-Dixie's and Wal-Mart's prices on 24 different HBC products and added up the totals for the two stores. The Winn-Dixie bill was $94.05 before tax, while the Wal-Mart bill was $114.64, also before tax.

Winn-Dixie ran the price comparison against Wal-Mart because the mass merchant has a public perception as the giant of low HBC prices, said Terry Walsh, marketing director for Winn-Dixie's Miami division. By showing that Winn-Dixie's total bill was lower than Wal-Mart's, he added, the supermarket was able to reinforce its image as the area's "low price leader."

"We run an HBA [price comparison] ad every four weeks," said Walsh. "Mainly we compare our prices to Wal-Mart, but sometimes we'll target Walgreens. It gets our low price message across."

"Sick of high prices?" the ad asked. "Winn-Dixie saves you more everyday on your health and beauty products!"

It continued: "Save $20.59 with Winn-Dixie! Winn-Dixie is 17.9% lower than Wal-Mart on the total of these items."

The ad revealed the products in the price comparisons were purchased on July 24 at the Wal-Mart store on Hypoluxo Road in Lake Worth, Fla., and the Winn-Dixie on North Congress Avenue in Lantana, Fla.

Featuring sketches of products manufactured by Tampax, Fixodent, Pond's and Neutrogena, the HBC comparison was placed in the center of a larger, full-page store advertisement from Winn-Dixie.

The largest price difference shown in the ad was for Frost & Design Hair Color conditioner, which was priced at $11.16 at Wal-Mart and at $8.97 at Winn-Dixie. The smallest price difference shown in the ad was nine cents, on Diaperine Baby Wipes 100-count.