Price Savers steps up growth in South California market

Price Savers Steps Up Growth In South California Market

SALT LAKE CITY -- Price Savers is taking advantage of the growing consumer acceptance of membership warehouses by expanding its presence in California.

Set to open in May will be the second Los Angeles-area warehouse for Price Savers and the first of three to open this year in the region. Price Savers announced plans to open eight to 10 new warehouses in the Southern California market in the next two years.

The chain operates six warehouses, located in Anchorage, Salt Lake City, Seattle and metro Los Angeles, and plans to double that total to 12 by the end of 1987.

Kevin Dunn, marketing director for Price Savers, said the company is looking to take advantage of the popularity of warehouse outlets, particularly in areas where other warehouse units--typically Price Clubs--already operate.

Price Savers is not looking to "butt heads [with Price Club], rather share the markets," Dunn said. Price Savers is keeping a five-mile radius distance from Price Club outlets, he added.

Dunn acknowledged that the company's warehouses follow the Price Club format, because "we're really patterned quite similar to them." At least 60% of Price Savers' membership is derived from businesses, with the rest coming from government and bank employees.

Cost-consciousness keeps Price Savers' prices low on such items as appliances, food, household goods, automotive and electronic equipment, office supplies, beverages and some clothing, Dunn said.

A subsidiary of The Krogr Co., Price Savers is relying on its parent company for much of the capital investment for the expansion. Kroger is "really behind us," since Price Savers has been able to show "an ability to control expenses," he said. Management and merchandising decisions come from Price Savers' head office in Salt Lake City, Dunn said, through company president Thomas Grimm.

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