Rainbow recently discontinued its double coupon program on Saturdays. The company still offers double coupons on Wednesdays. While couponers are disappointed, the news isn't surprising. Ever since Roundy's/Rainbow added the second day of doubling, it was billed as temporary, said Vivian King, a spokeswoman for Roundy's. Still, there will probably be another promo around the corner, although King would not confirm any specifics.
Cub shoppers have also noticed some cutbacks. Pat Fleetham of Minneapolis said that pre-priced items such as
bagged snacks, greeting cards and magazines no longer get a 10 percent discount at the register.
It's a way for supermarkets to avoid or delay raising prices directly, said supermarket analyst David Livingston of DJL Research near Milwaukee. "The Roundy's stores in Wisconsin no longer give you a nickel discount if you bring your own bag," he added.
Unfortunately, the two chains are struggling against low price leaders such as Aldi, Wal-Mart, Target and Costco and Sam's Club, Livingston said. In its 2011 fiscal year annual report, Supervalu's CEO Craig Herkert said that adjusted earnings were down 6 percent. (Roundy's which is privately held, does not report earnings.)
What other examples have you seen that Cub and Rainbow are trimming discounts or amenities? Longer checkout lines due to fewer staff? Reduced hours of operation in customer service? These are tough times for supermarkets as they struggle in a low-margin business to survive against names or stores that many of us never shopped at a decade ago---Aldi, SuperTarget and Wal-Mart Supercenters.
