The discount chain that could become Wal-Mart’s worst nightmare by offering even cheaper prices

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EEV: When your only business model is predatorial pricing. There will be always someone willing to make less money than you. (I.e. Pic n save, Woolworth, K-Mart, etc..etc..) – This one does not accept credit cards ūüėČ

 

 

  • Western-based chain WinCo currently has¬† around 100 stores
  • It appears to offer better employee¬† conditions than its giant rival
  • They buy direct from supplier and not accept¬† credit cards

By  Daily Mail Reporter

PUBLISHED: 11:32 EST, 9  August 2013 |  UPDATED: 11:46 EST, 9 August 2013

A grocery chain has been dubbed ‘Wal-Mart’s¬† worst nightmare’, thanks to a radical new business model which has seen it go¬† from strength to strength.

Western-based chain WinCo, which currently  has around 100 stores, offers cheaper prices as well as better employee  conditions than its giant rival.

It keeps its costs low by eliminating the  middleman and buying direct from suppliers.

Strength to strength: Rapidly expanding grocery chain WinCo offer lower prices and better pay and conditions for staff than most of their big rivals 

Strength to strength: Rapidly expanding grocery chain  WinCo offer lower prices and better pay and conditions for staff than most of  their big rivals

WinCo keeps prices low by buying direct from suppliers and asking customers to bag their own groceries 

WinCo keeps prices low by buying direct from suppliers  and asking customers to bag their own groceries

Customers are also expected to bag their own  groceries and credit cards are not accepted, bringing prices down even  further.

And unlike WalMart, which tends to offer¬† dozens of different brands’ versions of the same item, WinCo no9rmally stocks¬† just one or two.

Retail analyst Burt Flickinger III described¬† WinCo rise as being ‘unstoppable’.

He told the Idaho Statesman: ‘They‚Äôre Wal-Mart‚Äôs worst nightmare.’

Running scared: WinCo has been described by business analysts as 'Wal Mart's worst nightmare'Running scared? WinCo has been described by business¬† analysts as ‘Wal Mart’s worst nightmare’

Unlike WalMart which is notorious for  offering low pay, WinCo also offers provides staff with health benefits and  pensions.

Retail expert Brad Tuttle told Time Magazine: ‘Generally speaking, shoppers tolerate Walmart‚Äôs¬† empty shelves and subpar customer service because the prices are so¬† good.

‘The fact that another retailer‚ÄĒeven a small¬† regional one‚ÄĒis able to compete and sometimes beat Walmart on prices, while also¬† operating well-organized stores staffed by workers who enjoy their jobs, like¬† their employer, and genuinely want the company to be successful.’

Read more: http://www.dailymail.co.uk/news/article-2388113/The-discount-chain-Wal-Marts-worst-nightmare-offering-cheaper-prices.html#ixzz2bUhnanv2 Follow us: @MailOnline on Twitter | DailyMail on Facebook



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