Discount Supermarket Wars Heating Up In Pittsburgh

ROSS TOWNSHIP (KDKA) -- Discount supermarket wars are heating up in the Pittsburgh area.

On Sunday, the Giant Eagle chain opens its first value-priced grocery, called "Good Cents," on McKnight Road in the North Hills.

Good Cents Vice President John Tedesco says the new store grew out of Giant Eagle's Valu King stores. They'll accept coupons, but no doubling. No frills. No Fuelperks.

"We'll offer one size of Heinz ketchup," Tedesco says. "A typical supermarket will offer probably eight or 10 different sizes. We'll ask customers to help us keep our prices low, by bringing their own bags, and by helping us by packing their own bags."

Duquesne University marketing professor Audrey Guskey says full-service stores in the area will be forced to cut their prices.

"It's a tough situation for the supermarkets, because their margins, the amount of money they make per item, is very, very small to begin with," she says. "So by doing this, lowering the prices, they're losing out. But it's a win for us consumers."

Meanwhile, several Giant Eagles north of Pittsburgh have already matched the price on the new store's bananas: 28 cents a pound.

RELATED LINKS:
Good Cents Discount Grocery Store Opening This Weekend (10/30/12)
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