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In one of the most dramatic price reductions in its history, Dierbergs Markets is reducing prices on two of its best-selling categories: milk and eggs.
Beginning this week, 23-store family-held grocer began lowering its everyday milk and egg prices in all of its St. Louis-metropolitan-area stores.
The company said the price reductions will save customers almost 20 percent on the company’s best-selling skim and 2 percent gallon milk, and almost 30 percent on the best-selling variety of eggs.
“Milk is Dierbergs’ single top-selling grocery item, and eggs are in the top ten, which arguably makes this one of our biggest price-reduction initiatives ever,” said Greg Dierberg, president and chief executive officer, noting the measure will offer “meaningful savings to nearly every customer that comes into our stores.”
Calling the everyday pricing program “The Essentials for Less,” Dierbergs is reducing prices on gallons and half-gallons of all its major milk brands: Farmcrest, Dierbergs, Pevely and Prairie Farms. Egg prices will drop on all sizes of Dierbergs-brand Grade A Eggs.
Dierberg said escalating consumer prices over the last 12 months, at a pace that hasn’t been seen since 1991, have spurred it to initiate the price reduction program.
“We know our customers are looking for a good value,” Dierberg said. “And while there has been some recent relief at the pump, prices in general are on the rise in all sectors of the economy. So in a sense, we’re bucking the inflationary trend and giving customers another reason to shop our stores.”
Dierberg also acknowledged how his company is “operating in an increasingly competitive environment and our answer to competition is to keep our prices as low as possible and focus on the things we do best. That means a mix of great values, like lowering our prices on milk and eggs, combined with our hallmark platforms of quality, variety and friendly service. That’s how we keep our competitive edge.”
Dierberg said the long-term commitment to lower milk and egg prices represents a significant investment by the company that involves re-directing marketing funds and re-assigning monies recovered through increased operational efficiencies.
“Conservatively, an average family of four consumes about two gallons of milk per week and a carton of eggs,” Dierberg explained. “It’s easy to see how lower prices for those essentials will have an immediate and favorable impact on a family’s food budget.”
The new everyday pricing policy does not extend to specialty milks, organics or soy varieties although those products will be included in advertised specials and other price-cut programs and events.
Before the current price reduction, Dierbergs’ Farmcrest-brand milk and Dierbergs Grade A Large Eggs were was sold at the same everyday price as the store brands of its two major supermarket competitors.
Dierbergs’ “The Essentials for Less” initiative complements other money-saving sales promotions the company offers. Each week, Dierbergs posts 10,000 weekly price cuts and hot advertised specials.
In July, the company introduced what it’s already touting as a “very successful” discounted generic prescription program whereby customers pay $4 or $10, respectively, for 30-day or 90-day prescriptions from a list of 350 commonly prescribed generic drugs.