Local grocers rival for shopper loyalty
Published: November 3, 2009
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Joe Fasula's thoughts turned to competition Monday as he surveyed renovations at Gerrity's Supermarket on Main Avenue in West Scranton.
"With Walmart coming, we had to do something," he said, while discussing the $1 million upgrade to the only supermarket property the nine-store grocery chain owns. "We couldn't let our flagship get eaten up."
Walmart, the nation's largest retailer and grocer, is building a new supercenter on Main Street in Taylor that is projected to open next fall.
Changes in the region's grocery industry reflect renewed rivalry for shopper loyalty as food prices continue to drop.
Prices for food at home in September were down 2.5 percent from the year-earlier period, according to the U.S. Department of Labor. Costs of dairy items, meat and poultry, and fruits and vegetables all declined substantially in the last year.
"It's getting more competitive, and there is a price war going on," said David Livingston, a Wisconsin supermarket analyst. "It's very competitive in the Scranton market."
As Gerrity's reveals its latest advance, two other grocers are moving to strengthen their positions, too.
Weis Markets Inc.'s store in South Abington Twp. started 24-hour service on Thursday, spokesman Dennis Curtin said. Sunbury-based Weis runs nine markets in Lackawanna and Luzerne counties.
"In the past six months, we have converted a significant number of our stores in Pennsylvania to 24 hours," Mr. Curtin said. "If someone needs to shop at 1 a.m., we are there for them."
Meanwhile, construction is winding down at the new 35,000-square-foot Riccardo's Market at Wheeler Avenue and Grove Street in Dunmore. The $3.3 million store is about a quarter mile from a longtime Blakely Street location Riccardo's will vacate.
"I have no opening date yet, but I want to be open right after the holidays," President Rocco Riccardo said.
Gerrity's West Scranton store hadn't been renovated since 1987, Mr. Fasula said. The overhaul includes wider aisles, with 20 percent more shelf space, larger bakery, freezer, dairy, meat and produce sections and expanded takeout and deli offerings.
New, computerized lighting and refrigeration systems will reduce electricity consumption by more than a third, Mr. Fasula said. Employment increased to 100 from 80.
"We've added a ton of variety," Mr. Fasula said. "It's so important to have the assortment."
Gerrity's also spent about $600,000 on a similar upgrade at its store in Luzerne, Mr. Fasula said, and the company plans eventual renovations at its stores in Wyoming, Clarks Summit, Moosic and on Keyser Avenue in Scranton.
Contact the writer: jhaggerty@timesshamrock.com
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