While there are many things AWG member retailers can do with their existing stores to help them in the battle against stores like Aldi and Dollar General, there is another tool in the AWG bag, and that’s the Price Cutter format.
Starting in 2020, Price Cutter was created to help assist Save-A-Lot retailers who wanted to convert their stores to a new banner and align with a different wholesaler. With its success, it is also an attractive model for retailers to invest in to fill a popular niche in the market.
Price Cutter is a curated assortment store that takes the best parts of Save-A-Lot and other retailers and adds AWG’s expertise, buying power, and marketing to create something even better.
With just under 4,000 SKUs, Price Cutter has twice as many items as similar formats and over half of the items are key-value item national and regional brands at everyday low prices. That’s perfect for target Price Cutter customers –lower-income value shoppers and consumers with thrifty mindsets.
The national brands stocked every day at Price Cutter provide a trade-up opportunity for shoppers. These shoppers can’t afford to be wrong on the products they buy –so they will spend the extra money as long as that item meets their expectations and is priced right. That’s why the AWG Price Cutter team is working with vendors to procure everyday bill back and scan allowances to create an everyday low cost of goods on national and store brands.
There’s a three-tiered price approach to most categories.
Always Save. The cost of this store brand is subsidized by AWG every day and is the value tier or opening price point in the categories carried in Price Cutter.
Key-value item national brands. The Price Cutter team likes to be very clear that everyday low costing has been negotiated onKVI national brands, which provides you with an extremely competitive edge. Simply put, if funding is not secured, we won’t carry it. Price Cutter is sensitive to dollar store retail prices, so they price many of its KVI national brands accordingly.
Best Choice. The powerhouse national brand equivalent saves customers at least 15 percent versus the national brand and for you delivers more penny profit. The team has worked closely with the AWG store brands team to secure low costing on this brand. That means Price Cutter doesn’t have short-term promotions, they have an everyday low cost in place to bring store brand costs and retail prices down, which eliminates the labor of handling TPRs.
Dry grocery is case cut and stocked to keep costs as low as possible. There is a large amount of product that comes case ready with open top boxes and more becomes available every month.
Price Cutter ads are digital-first through an app or web browser. Print ads are optional. There are digital coupons on the Price Cutter app, which can be important in engaging with the value-conscious shopper.
The Price Cutter meat program is defined by family packs, the pick five for $19.99 and added spiced pre-seasoned fresh meat, where they are able to get 20 cents more per pound. It’s also essential to have EDLC allowances in the process and smoked and frozen meat categories, to round out your meat selection.
The Price Cutter team takes a lot of pride in the quality of produce and you will notice the difference right away. Price Cutter retailers can also score extra sales by participating in a weekly web blast deal to create excitement for shoppers who can find unadvertised specials when they shop.
VMC supplies HBC, non-foods, specialty foods, and general merchandise for Price Cutter stores. In total, there are around 500 items supplied by VMC.
In bakery/deli there is more than 60 thaw and sell items and those are anchored by the extremely successful Always Save thaw and sell bakery items. These are pre-priced at one, three, and five dollars. This is a high impulse department and brings in high gross profit for Price Cutter stores.
There’s a host of other details that make a PriceCutter store a very attractive pursuit for AWG retailers. To get more information on the program or to start the process call Jeff Hays at (615) 859-8248 or email [email protected].
