Anne Bruce
Safeway is revising its deep cuts strategy to accommodate an every day low pricing regime geared towards driving basket growth.
A spokeswoman said initial "go low stay low" markdowns at a number of larger superstores will run in conjunction with Safeway's Gonzales deep price cuts advertised through flyers.
But deep cuts are being reviewed to finance the increased focus on EDLP.
She said: "We might be taking a price from £1.50 to 59p, which is a big investment, but if we take it back up to 79p it is still a fantastic deal and we can lower prices elsewhere. We are still determined to be the clear number one supermarket for deals." Safeway has already marked down around 5,000 lines across all categories in selected superstores, following low key trials.
It will decide whether to extend the new "go low stay low" pricing regime across its portfolio when trials are completed after Christmas.
A spokeswoman said: "The flyers are still a key part of our strategy. Prices elsewhere in the store should also be an incentive to shop at Safeway. We want to start driving basket growth."
She said Safeway's overriding ambition was to return cheaper baskets than its rivals.
Safeway introduced a price cuts concept on 150 lines at all stores this May, extending it to 1,000 lines in June (The Grocer June 22, 2002).
A spokeswoman added: "Go low stay low is not a reaction to our quarter two trading figures. We have been working on PoS and talking to suppliers about this for a long time.
"This is part of a concerted initiative to make people say wow'."

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