Houchens Expands Cost-Plus Format
Fri, 2012-11-09 16:06
BOWLING GREEN, Ky. — Houchens Industries here is slowly rolling out a
new cost-plus supermarket format known as Price Less Foods, a company spokesman
confirmed.
Price Less stores have opened in
four locations, most recently last week at the site of a former IGA operated by
Houchens in Weber City, Va. Stores also operate in Kingsport, Tenn., and
Johnson City, Tenn. — also former IGA sites.
Alan Larsen, the Houchens spokesman,
said additional Price Less stores were in development, but would not specify
how many or their locations. A web search returned job
postings advertising Price Less stores hiring for new stores coming
to Old Hickory, Tenn., and Hendersonville, Tenn.
Price Less stores offer a full range
of branded groceries priced at cost, with a 10% fee added to the basket at
checkout. The company said product cost is determined by the total expense to
buy and receive products from its supplier, including freight, fuel surcharge,
labor, warehouse and overhead.
Minneapolis-based Nash
Finch Co. experimented with a similar pricing scheme a few years ago
at its Avanza banner in Denver but discontinued it after consumers complained
that the pricing was deceptive. The company settled lawsuits related to the
pricing in 2010.
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