News & Observer | newsobserver.com | Loyalty desirable but hard

Columnists: Haynie | Holly | Jones | Klonicki | LaGrone | Mark | Saylor | Serna | White  
2005:
Published: Apr 29, 2005 12:30 AM
Modified: Aug 16, 2006 05:17 PM

Loyalty desirable but hard

 

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Earlier this month, we ran a story about The Raleigh Independent Business Alliance, a group of independent, local retailers trying to sell shoppers on the idea of buying from them instead of those large chains that come in from out of state.

The chains rob Raleigh of its "unique flavor," complained one local business owner. They send local dollars out of state, complained another.

Good points. It's the dark side of the chain's invasion of the Triangle. Retail chases rooftops, and when there are enough rooftops, the big boys take notice.

If you plotted Wal-Mart SuperCenters on a map of Wake, including the one they're trying to open in Apex, it would form a rough circle (a target?) with the existing Wal-Mart on New Hope Church Road that will become a SuperCenter next month in the middle (the bull's- eye?).

The SuperCenters are such a threat because, unlike regular Wal-Marts, they contain full supermarkets. And the prices smoke the competition.

Believe me, other supermarkets are not happy.

And neither must gas stations be happy about the new Sheetz on Thornton Road -- the foot-in-door facility in the Triangle for the Altoona, Pa.-based company. Last I checked two weeks ago, Sheetz was selling regular for $1.99 a gallon, compared to $2.20 and up for many of its competitors.

One complaint you hear from critics is that the chains engage in predatory pricing -- selling at a loss until they drive competitors out of business. Their prices will rise when the chains are the only game in town, the gripe goes.

I asked Dan McMahon, Sheetz' executive vice president, to respond to that charge.

"In North Carolina, you're required to sell gas above cost," he said. "We don't sell gas with the intention of driving anybody out of business."

But he made it clear they will not be undersold. That local alliance has a tough row to hoe.

Editor Dan Holly can be reached at 829-4633 or dholly@newsobserver.com.

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