At a time when some grocery stores are seeing shoppers cut back on spending, two supermarkets are seeing sales go up. And they have something in common that customers seem to be interested in as inflation keeps bringing the price of goods up.
Weis Markets reported an 8.4% boost for the second quarter of this year, while Albertsons year's sales were up almost 7%. Both supermarkets have a strong focus on savings. Weis Markets, which is based in Sunbury, Pa. and has locations across seven states, in particular, spent millions promoting its brand's value, which has paid off.
"We are also mindful of inflation's impact on our customers and continue to promote the value of our private brands along with the fuel and retail product savings available through our Weis Rewards program," said Weis Markets' CEO Jonathan H. Weis on the company's earnings report. "In May, we made a multi-million-dollar investment to expand our Low, Low Price program by lowering prices on hundreds of our best-selling brand-name and Weis Quality frozen products."
In the same realm, Albertsons has turned a tumultuous few years around to see profits return in its favor. One trend that has benefited the company has been shoppers' transition toward spending on private label products—which for value-based grocery stores that invest in its own brands, is good news.
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And there is growth on the horizon for Weis Markets as well. In April, it announced it was building four new stores and fuel centers, as well as working on improvement projects and technology upgrades for its stores.
Tech improvements have been essential for adapting to the modern grocery business and Albertsons has made advances in the realm as well. Its recently updated app now offers personalized recommendations for shoppers and expanded services like two-hour delivery and express pickup, which have helped increase its sales.