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Houchens Expands Cost-Plus Format

BOWLING GREEN, Ky. — Houchens Industries here is slowly rolling out a new cost-plus supermarket format known as Price Less Foods, a company spokesman confirmed.

Jon Springer, Executive Editor

November 9, 2012

2 Min Read
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BOWLING GREEN, Ky. — Houchens Industries here is slowly rolling out a new cost-plus supermarket format known as Price Less Foods, a company spokesman confirmed.

Price Less stores have opened in four locations, most recently last week at the site of a former IGA operated by Houchens in Weber City, Va. Stores also operate in Kingsport, Tenn., and Johnson City, Tenn. — also former IGA sites.

Alan Larsen, the Houchens spokesman, said additional Price Less stores were in development, but would not specify how many or their locations. A web search returned job postings advertising Price Less stores hiring for new stores coming to Old Hickory, Tenn., and Hendersonville, Tenn.

Price Less stores offer a full range of branded groceries priced at cost, with a 10% fee added to the basket at checkout. The company said product cost is determined by the total expense to buy and receive products from its supplier, including freight, fuel surcharge, labor, warehouse and overhead.

Minneapolis-based Nash Finch Co. experimented with a similar pricing scheme a few years ago at its Avanza banner in Denver but discontinued it after consumers complained that the pricing was deceptive. The company settled lawsuits related to the pricing in 2010.

Read more: Avanza Ends Shelf-Plus Pricing

 

About the Author

Jon Springer

Executive Editor

Jon Springer is executive editor of Winsight Grocery Business with responsibility for leading its digital news team. Jon has more than 20 years of experience covering consumer business and retail in New York, including more than 14 years at the Retail/Financial desk at Supermarket News. His previous experience includes covering consumer markets for KPMG’s Insiders; the U.S. beverage industry for Beverage Spectrum; and he was a Senior Editor covering commercial real estate and retail for the International Council of Shopping Centers. Jon began his career as a sports reporter and features editor for the Cecil Whig, a daily newspaper in Elkton, Md. Jon is also the author of two books on baseball. He has a Bachelor of Arts degree in English-Journalism from the University of Delaware. He lives in Brooklyn, N.Y. with his family.

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