In 2008 and 2009, A&P sailed straight into the perfect storm: a faltering national economy and the company’s attempt to integrate the purchase of a regional competitor, Pathmark. Sales and profits were down. Morale was at an historic low. The company’s research clearly indicated that multiple shifts in pricing strategy and the reality of higher shelf prices were causing customer defection.
In supermarkets, the name of the game is frequency of visit. Our challenge was to restore pricing credibility with customers—even though A&P was late to the party on price rollbacks—so that shoppers would begin to trust the company’s pricing and put the store back on their considered list.