BUSINESS

ShopRite & Price Chopper



ShopRite & Price Chopper

Brief Introduction of the Entities

Shoprite

It is said to be a retailers coop and has a supermarket chains in the north east side of United States. The branches are said to exist in Pennsylvania, New Jersey, Maryland, Connecticut as well as Delaware. The company is said to entail forty seven affiliates which are individually operated and owned whereby there are more than two forty stores present under distribution and corporate arm named as corporation of Wakefern Food. It is said to be owned as well as operated itself in thirty localities via its ShopRite supermarket subsidiary. In the year of 2011, ShopRite is said to be the most popular food retailer in Philadelphia which is said to push the markets of ACME to a second position after 20 years of dominancy in the same region. In the year of 2011, it was noticed that Wakefern was placed at the 17th rank amidst the operators of the supermarket in the United States (www.article.wn.com).

Shoprite is said to have a low price leadership which has aided it in attaining a strong market position. It has said to provide best value at the lowest price therefore attracting more customers and hence creating more demand. Upon the conduction of research by top research companies it was revealed that ShopRite can be termed as a price leader in the arena of supermarkets which is also a competitive edge over the others and is said to be flourishing economically hence being a contributor to the GDP of the company. The company has all along sold two fifty products that have been sold in cheap prices which has aided the company in attaining large customer base. It has a customer base of 22.1 million customers. The segment of South Africa has witnessed an increase in the revenue totaling up to a 7.2 percent of the revenue. It is also said to face an increase in the trading profit as well in the year of 2011 whereby the increase was of 19.9 percent. When it comes to the turnover it increased from 12. 3 percent up till the 6 months till the last month of 2011. The company has said to serve around 3.2 million customers in total up till 2011. The customer growth that the supermarkets of South Africa had faced an increase of 3.6 percent. The brand attained the ability to retain its position and at the same time increase the number of customers utilizing their products and services was only attained via the low prices that were present. It also aided the company in snatching away the customers of the other competitors. The company is able to benefit from it up till now and has been able to have derive money value to the maximum even when they economy was passing through tough and suppressing times. It was the low prices which gave the company a competitive advantages to the extent that it was able to hold a stronger market ...