Grocer Responds to Wal-Mart Threat in Greater Cleveland

Here is another example of the competitive impact that Wal-Mart is having on established retailers in the marketplace. Check out our earlier analysis of the grocery industry nationwide here.

Giant Eagle announced it is lowering prices at all its Cleveland area stores. The move could be prompted by new competition from Wal-Mart, which has become the nation's largest grocer and is expected to capture more than a third of the entire grocery market in five years. Area grocers note that the area's population is not growing, but the number of food retailers is on the rise, meaning someone is going to take a hit. And if the recent past is an indication, it's not going to be Wal-Mart.

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