
Originally Posted by
Andra
1. They are getting reimbursed for the coupons face value at the very least--so even if you get something free with a .75 q it's like you really paid the store .75 + .08 handling fee.
2. They more than make up for any loss in profits by people buying things they normally would that week anyway--example: A working mom that has to shop after work and drag the kids along is less likely to want to go to another store to get milk and salad mix even if it's cheaper elsewhere. She's going to pay HT prices. Very few people super-coupon and only get the sale items like we do. I saw tons of couponers yesterday. Most of them had their carts full with generic items as well as coupon items--they are getting what they need for the week in addition to what's free or cheap.
3. Harris Teeter's great customer service and high-quality are a big draw. HT has the freshest meat (and I can usually find marked down organics), quality produce (usually locally grown), and a big variety of specialty items. If I were wealthy and didn't use coupons I would go to HT for this alone. The fact that they are THE most coupon friendly store in town does make me more loyal (as far as my pocketbook allows--If HT has the same deal as another store I want to go to HT more).
4. I think they are stepping up the number of triples event because of competition in certain markets. In a bad economy the grocery store is one of the few businesses that still makes money--people still have to eat, do their laundry, etc. Bloom and Bilo are in their area, I think, and they have ocaisional triples. I heard they are building a Bloom in Raleigh (never been their so I'm excited). Two new Lowes Foods have opened here in the last year. I also know of at least one new HT location being built in my area. The grocery stores are making money or they wouldn't be doing all this building.