Wegmans, an “upscale” grocery chain with stores in 5 Mid-Atlantic states, is cutting prices to stay competitive during the post-Wall-Street apocalypse.

A statement on their website reads:

We are lowering hundreds of prices in anticipation of our costs dropping in the future, and we intend to bring more prices down as soon as we can. These are uncertain times, and we know our employees and customers are very concerned, and so are we. During difficult times like these, it’s okay with us if we make a little less money. And, as always, we are committed to offering the lowest price in the market on the items most important to families. We hope these savings will help you enjoy your time with family even more this holiday season.

This attitude flies in the face of the “sticky price” effect — the tendency for retailers to hold on to higher prices even after their costs have dropped.

Wegmans says that their price reductions would save the typical family between $40 and $60 a month in grocery spending.

From the Morning Call:

The move comes as low-cost retailer Wal-Mart boasts October sales that beat expectations. The Bentonville, Ark., company promoted low-cost Doritos, frozen pizzas and flat-screen TVs to cater to customers who are spending more time at home and eating out less.

And retail analysts expect Wal-Mart is poised to grow as it retains its core customers and gains shoppers who are trading down from higher-priced stores to save money.

At Wegmans Allentown store on Thursday, Boyertown resident Cal Emerich was pleased to find that his favorite Cranberry Walnut muffins were marked down to 99 cents from more than $1 during his last trip. He shops there about once a month.

”This is wonderful,” he said of the lower prices. ”I might make the trip more often.”

Wegmans lowers prices on hundreds of items [Morning Call](Thanks, Liz!)

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