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IGA: GIGA Hikes in Dissatisfaction Levels


IGA: GIGA Hikes in Dissatisfaction Levels

An affiliate of Sobeys, IGA is a leading supermarket in Québec and a local retailer known for the variety and the quality of its products. Obviously, to support this kind of offer, prices in such stores tend to be higher.

The Failure :

In the spring of 2016, IGA launched with great fanfare a campaign to introduce everyday low prices on 8,500 of its products – labelled GIGA low prices. The supermarket chain announced an overall 5% to 7% price cut, offset by bringing an end to its policy of offering consumers free items and by negotiating new agreements with its suppliers.

In fact, during this same period, the price of 2,000 items actually went up and promotions were withdrawn or modified. A wave of popular discontent came crashing down, along with commentary and articles about the price hikes in the media. IGA was forced to reorient its campaign, at times shifting the blame over to its suppliers.

The Moral :

Despite appearances, this same situation wouldn’t have made a ripple at Costco, Wal-Mart, Maxi or Super C. The Achilles heel of IGA didn’t lie in raising prices on a few items – the competition does the same thing :). Their mistake lay in promoting a campaign based on a value that it is not known for: a low-price policy. By turning the spotlight on its pricing strategy, IGA came under close scrutiny. Anything that seemed to diverge from its campaign became the focal point for unwanted attention.

Source Image : OMACCanada.com

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