business news in context, analysis with attitude

Interesting piece in the New Haven Independent about a battle taking place in that Connecticut community over the proposed opening of a new Save-A-Lot limited assortment grocery store.

The opposition says that the opening of a Save-A-Lot would doom the local supermarket that is just a block away, and which presumably be unable to match Save-A-Lot on price. What makes the argument intriguing is that the other grocery store is a Shaw’s - which is owned by the same company that owns Save-A-Lot, Supervalu.

Which is the argument that the pro-Save-A-Lot forces make - that Supervalu would never open a store designed to put another one of its stores out of business. Save-A-Lot, proponents say, caters to different customers than Shaw’s, and there is no reason that the two could not co-exist.
KC's View:
Unless, of course, Supervalu’s plans include the possibility that it could sell the entire Shaw’s chain to one or more buyers. in that case, it would not be competing with itself....and would be going with the format that the company’s new leadership seems to believe is best positioned to take advantage of the “new normal.”