Both Dierbergs and Schnucks opened significant new stores and concepts in the past week, but, amid that, had to keep one eye on the other guy. The two are locked a battle over the price on the tag.
In 50 area Schnucks locations, huge mocked-up receipts compare prices for an "average" shopping trip at Schnucks versus Dierbergs, listing items like grapes and store-brand bread. Customers are taking notice.
"You see 'em right as you walk in the front door now. They're hanging right down by the produce. I think it's like 97 to 130-something the last time I saw," one Schnucks customer told KMOX. He says it's "an interesting marketing concept" but his decisions are influenced most by weekly sales.
"I do look at pricing, so Dierbergs is usually my last stop, just because it's a little more pricey, although if I need specialty items I can find them there," another Schnucks shopper said. A Dierbergs customer says she chooses them because "they do have good customer service; I like the cheese."
Signs in the aisles at the new Dierbergs in Crestwood put the focus on price.KMOX/Michael Calhoun
Price comparisons at SchnucksKMOX/Michael Calhoun
In separate, one-on-one interviews with KMOX News, top executives at both grocery chains share their strategies.
Greg Dierberg tells us he isn't sweating.
"You know, Schnucks might have banners hanging in their stores, but I think if you compare, you'll see that we're priced right," Dierberg said.
Todd Schnuck tells us they're going all out.
"We've invested millions of dollars, frankly, in our pricing over the last few years and we're at the point where we said, 'people need to understand how good our prices really are.' That's on the things that you buy everyday, the highest velocity items, things like berries and strawberries, grapes, chicken breasts, things like that, eggs," Schnuck said.
Schnucks claims its hypothetical bill total is about $35 cheaper than Dierbergs. There are price comparisons on specific, popular items too.
Price comparisons at SchnucksKMOX/Michael Calhoun
A Schnucks official says the company ran a similar 'price check' campaign against the Hy-Vee chain in outer markets like Columbia, Missouri; Bloomington, Illinois; and Janesville, Wisconsin, and say it made headway.
"We're putting the information out there so that the customers understand what the reality is, on an everyday pricing basis, where our prices are, versus... somebody else," Todd Schnuck said.
Greg Dierberg said: "I think we're all just trying to find our own place. This business has always been competitive and now is no different."
While the St. Louis area has consolidated competitors like Shop 'n Save, new ones like Fresh Thyme Market have moved in. Fresh Thyme corporate sibling Meijer is also building a new store in the Metro East which will be more like a Target or Walmart with a mix of general merchandise and fresh foods.
According to Shelby market share data, both local banners have been able to take a decent chunk out of Walmart's business in recent years, especially after the closure of Shop 'n Save and sale of its assets.
2018 market share:
Walmart 34%
Schnucks 21%
Supervalu 17% (included Shop 'n Save and outstate IL banners)
Dierbergs 5%
2021 market share:
Schnucks 27%
Walmart 21%
Dierbergs 9%
...
Save-A-Lot 2%
Aldi 2%
Target 1%
(This data covers the region including Missouri, Illinois, Indiana and Kentucky markets of Cape Girardeau, Carbondale-Marion, Champaign-Urbana, Danville, Decatur, Evansville, Owensboro, Springfield, St. Louis, and Terre Haute.)
