Today’s Wall Street Journal had a piece on a local giant, Supervalu, and the tricky balancing act they need to pull off to successfully set prices amid cost increases, strong price competetion, and a stagnant economy.  Given that we are talking about pricing in class right now this is especially timely and grocers are among the most price competitive businesses operating on razor-thin margins with many cost leaders vying for business.  In a way, food has become a commodity and people are looking for the lowest price in many (most?) cases.  We can argue whether or not food being commoditzed is in the best interest of our population and country, but it is the reality that Supervalu (amongst others inclusing Walmart) find themselves operating.  The pressure is intense to remain profitable while juggling the costs and prices…

Earnings: Supervalu in Pricing Vise. Timothy W. Martin, Paul Ziobro. Wall Street Journal. (Eastern edition). New York, N.Y.: Oct 20, 2010. pg. B.4