paged
daily nebraskan
Wednesday, august 29, 1979
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By Kim Wilt
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Price cuts initiated by Safeway Supermarkets will be
permanent for the most part, according to a company
spokesman.
Dick Knight, Safeway public relations manager, said
that while "Super Saver" weekly specials will be tempor
ary , the new prices will be the "everyday low price."
'We'll evaluate on an item-by-item, day-to-day basis,"
he said, "but as far as we're concerned, this Is the way
we're going to continue."
Safeway's competitors iren't predicting a permanent
price war, but they agree that prices will remain low for a
long time.
Allan Noddle, executive vice president of Hinky Dinky,
said that while some prices could go back up after a few
weeks, others could stay at the new low level for years.
"Some of the cuts will disappear quickly, and some
will stay level for several years."
Hinky Dinky lowered its prices almost immediately
when Safeway came out with its price cut, he said.
'They're attempting to gain a bigger market share, and
we're not going to let them. We saw them doing this in
Wichita, Kan., Kansas City, Mo. and Denver, Colo."
Russ Paybold the manager at B&R IGA, 1709 Washing,
ton St., agreed. He said that Safeway does not have a
strong share of the Lincoln market, and is trying to
increase it.
"This is a national program that Safeway is doing," he
"We're going to remain competitive. We're just now work
ing on it."
He predicted that the price cuts could last anywhere
from a few weeks to three or four months.
Dan Schrief , president of Food4-Less, a new Lincoln
grocery, does not expect the price cuts to be a price war.
Food4-Less' prices are still lower than Safeway's, he
said.
"They're trying to keep up with the people they're
competing with" he .said. We're already under (their
prices)."
Food-4-Less Shoppers bag and carry their own grocer
ies. Schrier said the store usually does not advertise,
but carried a price comparison with Safeway in Monday's
Lincoln papers.
The full-page advertisement in Monday's Journal and
Star listed more than 100 Food 4 -Less items, and asked
shoppers to compare those prices with "any full service
store in this area."
Dwain Hutson, manager of Belmont Jack and Jill, 1 1th
and Belmont St., said he is unsure how long the price war
will last, but added that the store will lower it's prices if
Safeway's cuts appear to be permanent! Belmont Jack and
Jill's prices were lower than Safeway's before the cut, he
said. He said the store continually monitors the competi
tions prices.
Knight said that Safeway is not cutting prices as a reac
tion to a weak showing in Lincoln. The company usually
introduces some type of promotion in late summer, using
gimmicks, like bingo, or other games, he said. This year,
the company decided price cuts would be more effective.
There's always some kind of ad program, with some
kind of customer appeal-and interest in it eventually
wanes. Now, the customers don't want games or gim
micks, they want us to cut prices."
Safeway hopes to increase its sales in Lincoln by this
move, he said.
"We are in business to sell groceries, and if we can sell
more, well be pleased."
THE
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The annual
with all of it
Nutshell magazine makes its
annual appearance on campus
tnis month, filled with articles
written exclusively fpr the
college community. From
academics to sports to student
entertainment. Nutshell has it all.
IT'S FREE AGAIN FRO W f
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