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Econo Supermarkets
Business Overview
ECONO Supermarkets came in 1970, when Facundo Colon, owner of a small supermarket in Hato Rey of 5,000 square feet and Rafael Acosta Pastrana, owner of Oscar Grocery in Hato Rey decide to establish a business model that would allow it to compete effectively with the big chains of the moment; since then ECONO affiliate team is dedicated to working with a high level of commitment that has led them to become one of the leaders in the Food Industry Puerto Rico (Econo Supermarkets, N.d.). Today the business operates nearly sixty stores and has over a million square feet of store spaces as well as over five thousand employees. The company has even won several awards for their retail effectiveness (Caribbean Business, 1999). Their business model focuses on consolidation, efficiency, and customer relations. The stores sell a full range of grocery items as well as some household items.
Problem
Despite the success that Econo Supermarkets have had in the Puerto Rican market, new market entrants have acted to steal market share from the retail chain. Wal-Mart for example now has close to twenty stores in Puerto Rico and has worked to attract many customers. Walgreens and CVS have also opened many stores locally which also provide more competition.
Walgreens and CVS locations are more convenient for many types of purchases and are also popular for their pharmacy services. Wal-Mart is a retail giant and one of the largest retail chains in the country. It is difficult to compete with Wal-Mart on price and efficiency and therefore Econo Supermarkets may have to rethink their operating procedures to try to differentiate themselves from their competitors. The dilemma that will be the focus of the research is how Econo Supermarkets can best position themselves to compete with the new market entrants and develop a loyal consumer base. Econo Supermarket has many options available to them. However, they cannot try to beat Wal-Mart in efficiency or Walgreens and CVS for convenience for their customers. Therefore, they must reposition themselves in the market so that they can be sustainable.
Works Cited
Caribbean Business. (1999, July 1). Retailer of the Year: Econo Supermarkets. Caribbean Business, p. 44.
Econo Supermarkets. (N.d.). History of Econo. Retrieved from Econo Supermarktes: http://www.superecono.com/econo/default.aspx
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