Valu King to compete with Bottom Dollar in Pittsburgh

Giant Eagle, the Pittsburgh, PA-based supermarket, said on Monday its discount grocery brand Valu King will expand into the Pittsburgh market. According to the company's website, Valu King has four stores in Ohio and three in Pennsylvania. The PA stores are in Johnstown and Erie (2).

Bottom Dollar, a Delhaize brand that currently has 27 stores in Eastern PA and Southern NJ, entered the Western PA and Youngstown, OH markets earlier this year (see Delhaize to eliminate Bloom, open 7 Bottom Dollar stores this week). The discount grocer now has 14 stores open in that area, according to its website. Eleven of the 14 are in Western PA, with 3 in Youngstown.

Reportedly, Valu King's first store in Pittsburgh will be in a shopping center that already has plans to include a Bottom Dollar store. 

Walmart to reportedly lower grocery prices

Although Walmart officials remain mum on the subject, several publications have reported that the world's largest retailer is determined to regain its image as the low price grocery leader and lure back customers who are frequenting dollar stores and discount grocery chains.

The speculation is that Walmart is putting pressure on its food suppliers to keep wholesale prices down so they can pass along the savings to customers. And if any retailer has the power to convince wholesalers to absorb cost increases, it's Walmart.

"Hundreds" of Bottom Dollar stores in the pipeline

Bottom Dollar's parent company, Delhaize Group (Food Lion, Hannaford Bros.), said yesterday it is looking to add 450 new discount grocery stores worldwide over the next five years, "hundreds" of which would be in the U.S.

According to Company CEO Pierre Oliver Beckers, the plan for new stores represents an acceleration of previous forecasts and will help accelerate sales growth by 5% - 7% in the next three years.

According to Bottom Dollar's website, there are currently 23 stores in Pennsylvania and five stores in New Jersey, and the company has recently reported that 14 new stores are scheduled to open in the Greater Pittsburgh area next year. Bottom Dollar competes in the crowded grocery space with Save-A-Lot, Aldi, Walmart and the various dollar stores, not to mention traditional supermarkets and drug stores.