New store fractures local discount grocery market
July 28, 2016 at 4:25 p.m.
The newest grocery store in Warsaw isn't exactly a competitor of the adjacent Owen's superstore.
After three months of renovations, Save-A-Lot discount grocery store opened Thursday in the old Owen's facility on Center Street, just west of the newest Owen's.
The store is owned and operated by Owen's and is intended to dig into the local discount grocery market created by Aldi, a national chain that established itself locally along U.S. 30 in Warsaw six years ago.
Save-A-Lot features a clean white appearance inside and is marketed as a discount store in which customers bag their own groceries in exchange for less expensive prices.
The store offers basic necessities and a fresh meats counter.
"We feel it's more expanded than what our competitor is," said Don Good, general manager for Owen's who stood in one of the aisles and accepted occasional compliments from customers passing by.
The store occupies about 12,000 square feet of floor space and offers about 1,500 items.
While the typical superstore offers about 30,000 items, Save-A-Lot provides a variety of the basic needs for up to 40 percent less, Good said.
The store offers "quality products at pretty darn cheap prices," he said.
In addition to cash, the store will accept checks for the cost of merchandise, but will not offer check cashing services. Food stamps will be accepted as well.
At Aldi Friday, customers and employees were abuzz with talk of the new store.
Interim manager Pat Crawford welcomed the competition. If the community is big enough to support competition among the major grocers, it's big enough for the discount market, too, she said.
"It's good for business. It keeps us on our toes," Crawford said.
Crawford said some regular customers scouted Save-A-Lot and returned to say Aldi's prices were cheaper.
Aldi originated out of Germany and is part of a national chain in the United States. The company has 45 stores in Indiana.
Owen's, which is owned by Joe Prout, has stores in Huntington and Auburn.
The Warsaw Save-A-Lot is the first venture into the discount grocery market for Prout.
When the Owen's store closed three years ago, it was entirely gutted. The new store includes new refrigeration units, air conditioning and heating.
Owen's hopes to lease out the remaining portion of the building, Good said.
A sign at the store entrance reminds customers the store reserves the right to block the sale of mass quantities of single products, a warning directed to competitors who might find the prices enticing, Good said.
The policy is not intended for typical customers, he said.
"We want to pass the savings on to all of our customers," Good said.
In addition to the Owen's store on Center Street and one on the west end of town that was recently remodeled, the Warsaw grocery market consists of Marsh, which opened a new building six years ago, along with Aldi and a Kroger.
Owen's has had a presence in Warsaw for more than 40 years, Good said. [[In-content Ad]]
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The newest grocery store in Warsaw isn't exactly a competitor of the adjacent Owen's superstore.
After three months of renovations, Save-A-Lot discount grocery store opened Thursday in the old Owen's facility on Center Street, just west of the newest Owen's.
The store is owned and operated by Owen's and is intended to dig into the local discount grocery market created by Aldi, a national chain that established itself locally along U.S. 30 in Warsaw six years ago.
Save-A-Lot features a clean white appearance inside and is marketed as a discount store in which customers bag their own groceries in exchange for less expensive prices.
The store offers basic necessities and a fresh meats counter.
"We feel it's more expanded than what our competitor is," said Don Good, general manager for Owen's who stood in one of the aisles and accepted occasional compliments from customers passing by.
The store occupies about 12,000 square feet of floor space and offers about 1,500 items.
While the typical superstore offers about 30,000 items, Save-A-Lot provides a variety of the basic needs for up to 40 percent less, Good said.
The store offers "quality products at pretty darn cheap prices," he said.
In addition to cash, the store will accept checks for the cost of merchandise, but will not offer check cashing services. Food stamps will be accepted as well.
At Aldi Friday, customers and employees were abuzz with talk of the new store.
Interim manager Pat Crawford welcomed the competition. If the community is big enough to support competition among the major grocers, it's big enough for the discount market, too, she said.
"It's good for business. It keeps us on our toes," Crawford said.
Crawford said some regular customers scouted Save-A-Lot and returned to say Aldi's prices were cheaper.
Aldi originated out of Germany and is part of a national chain in the United States. The company has 45 stores in Indiana.
Owen's, which is owned by Joe Prout, has stores in Huntington and Auburn.
The Warsaw Save-A-Lot is the first venture into the discount grocery market for Prout.
When the Owen's store closed three years ago, it was entirely gutted. The new store includes new refrigeration units, air conditioning and heating.
Owen's hopes to lease out the remaining portion of the building, Good said.
A sign at the store entrance reminds customers the store reserves the right to block the sale of mass quantities of single products, a warning directed to competitors who might find the prices enticing, Good said.
The policy is not intended for typical customers, he said.
"We want to pass the savings on to all of our customers," Good said.
In addition to the Owen's store on Center Street and one on the west end of town that was recently remodeled, the Warsaw grocery market consists of Marsh, which opened a new building six years ago, along with Aldi and a Kroger.
Owen's has had a presence in Warsaw for more than 40 years, Good said. [[In-content Ad]]