Superior Supermarkets

SUPERIOR SUPERMARKETS – EVERYDAY LOW PRICING

FACTUAL SUMMARY

• Company Profile

Superior Supermarkets started in 1959 and it is a division of Hall Consolidated, a privately owned wholesale and retail food distributor. By 2002, Hall Consolidated distributed food and related products to some 150 company – owned supermarket units operating under three supermarket chain names through 12 wholesale distribution centers. Hall distributes food and related products to about 1,100 independent grocery stores in the U.S. through 12 wholesale distribution centers. Hall's sales in 2002 were $2.3 billion.

Superior is the smallest of the three supermarket chains owned by Hall, with sales of $192.2 million in 2002. Superior serves small towns in the South Central U.S., and is number one or two by market share in each of its trade markets. "Superior serves small towns in the South Central U.S., and is number one or two ranked supermarket chain in each of its trade markets as measured by market share." (Retrieved from Kerin & Peterson, p.471 on October 16, 2008). It operates three stores in the name of Superior Supermarket in Centralia Area of Missouri and it is perceived as the highest pricing supermarket in Centralia by regular shoppers.

• Competitors

Superior Supermarkets have three major competitors (Missouri Mart, Harrison's, and Grand America).

• Missouri Mart: The principal competitor of Superior. About 32% of Superior customers shop Missouri Mart regularly. Most of its customers are middle aged and older families with income of more than $30,000. The major strengths are the grocery and special purchase displays. The store lacks the quality and freshness presented in the other supermarkets in the area. Ads for low prices in some items with huge quantities are displayed in the grocery section. Missouri Mart enjoys a sizable trade from outside Centralia (customers from larger geographical area).

• Harrison's supermarket: It captured most of the business of the middle and upper-income groups in Centralia ($40,000) and more. It is perceived as having the "best" overall prices with an extremely favorable customer image regarding their everyday low prices. Harrison's supermarket also enjoys the second highest sales of the major chain stores. It is a well managed, clean, orderly and attractive place to shop and has an extremely favorable customer image. Its principal promotion theme is everyday low prices.

• Grand American: the most modern store in Centralia with the finest fixtures and décor. It is considered as a secondary competitor to Superior. Its dairy department is highly regarded by Centralia shoppers. Ads emphasize high-volume items and low prices. Customers come from residential areas similar to those of Harrison's. It customers income ranges from $20,000 to $35,000.

SWOT ANALYSIS

STRENGTHS

• The oldest Supermarket stores in Centralia.

• Have three stores in three different geographical areas.

• Perceived as having a high-quality merchandise particularly in