Metro (ON) flyer Oct 26 - Nov 1

[couponlady]

[Anna Michele]

Ty but their prices really are through the roof when you can get a pineapple for $1 this week they will be tossing out a lot of them do they not compare before hand

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[Arjon]

Ty but their prices really are through the roof when you can get a pineapple for $1 this week they will be tossing out a lot of them do they not compare before hand

It's easy to think all grocery chains compete with each other, and while this is true to a degree, it's only true to a smaller degree than you might think. Metro doesn't try to compete directly with discount chains like No Frills in the more price-sensitive segment of the market. Basically, their core target segment doesn't include you or me, but rather people who think and buy in a considerably less price-driven manner.

They know you and I will only shop there for their sharpest deals, and they're okay with that because we generate less profit than average. Because of this, they don't want more of our business badly enough to operate in the discount segment, which is what they would have to do to get it. And even then, we'd still shop around, so they'd only get part of our business anyway.

They're also not oblivious to market pricing. When they advertise pineapple for $3.99, they have no expectation that it will be the best price out there, and they have data that allows them to predict how much they will sell at this price point within a reasonable margin of error. So they stock accordingly. Also, keep in mind that at $3.99 Metro's profit per pineapple sold is far higher than No Frills' at $1.

[Shwa Girl]

Because of this, they don't want more of our business badly enough to operate in the discount segment, which is what they would have to do to get it..

Metro operates in the discount segment. As Food Basics. Metro just bought Jean Coutu group.
They own

Metro, Metro Plus, Super C, Food Basics, Marché Ami, Les 5 Saisons and Marche Adonis. [Pharmacies] include Brunet, The Pharmacy, Clini-Plus, and Drug Basics.

[Arjon]

Metro operates in the discount segment. As Food Basics. Metro just bought Jean Coutu group.
They own

The key point of differentiation is that the Metro corporation operates Food Basics stores in the discount segment, but does not compete there with the Metro chain, which is why Metro stores don't price like Food Basics.