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Columbus Business First reports that Giant Eagle has announced that it is "reducing prices on 2,000 products, an estimated value of $40 million in reductions, effective Thursday. This follows a $70 million cut in prices on 3,500 items in March."

According to the story, "The March round of cuts generated favorable results for the grocer, so it opted for another round. That first round of cuts was to regular-purchase items like dairy, lunch meats, frozen food. The new round includes more reductions in those categories as well as price cuts in produce, fresh chicken and healthy and beauty among other areas."

“We believe (the recession) forever impacted the consumer’s view of price and value,” John Tedesco, senior vp/merchandising, tells Business First. “Customers are willing to shop all channels now. They’re willing to go to the deep discounters. They’re willing to make multiple trips.” And so, Giant Eagle recognized the continuing need to demonstrate that its stores should serve as a one-stop shop for value-minded customers.
KC's View:
It is instructive that, years after the recession supposedly "ended," companies like Giant Eagle - which is one of the best operators anywhere - are still implementing these kinds of programs ... which tells you that while some big companies (especially hedge funds and brokerages) may be generating big profits, there are a lot of places in this country, and a lot of people, who are not feeling any sort of bounce. I also think that this has as much to do with competition as the economy...