A different pricing strategy marked the opening of Safeway's first ever hypermarket in Plymouth this week. Safeway has abandoned its traditional high:low pricing policy for the new store at Plymstock, opting instead for cheaper prices throughout but continuing the deep cut offers synonymous with the retailer. Chief executive Carlos Craido Perez said: "The excitement of the promotions will still be there, but with a lower overall price platform." He denied that the new strategy would be rolled out to all the company's formats, and said the hypermarket had the scale necessary to achieve cheaper prices than the smaller store formats. He added that running two pricing policies side by side would not be a problem. The 58,000 sq ft megastore branded format is also the company's first venture into non food, featuring a range of products including televisions, small electrical goods, books, CDs, videos, lighting, bedding and cooking utensils. The centrepiece of the new store is what the company refers to as the "hub", a seating area next to the Fresh To Go counters, rebranded Megafresh. It is also near the book, CD and video areas, allowing customers to eat instore, have a cup of coffee and browse in a relaxed atmosphere. Criado-Perez said if the concept was successful it could be exported: "We think it may be possible to have the hub concept as a standalone store in its own right, however it's very early days and we'll wait and see how the customers react to it in Plymstock first." The megastore was created by the expansion of an existing Safeway store and Craido Perez said plans are under way to have four more megastore expansions up and running by early next year with ten more the following year. He added: "I'm very proud of what we have achieved, this is a major step in the rollout of the new Safeway." {{NEWS }}

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