trends: May 2009 Archives

Supermarket chain Albertsons is announcing a shift in prices to retain customers who have been shopping at discount stores. The program, called the Big Relief Price Cut, lowers prices throughout the store at 222 Albertsons locations in California. The move is designed not only to counter the discounters, but to keep up with competitors like Vons and Ralphs, who have already moved to push prices down.

(As an aside, what's with the California grocery scene that no one uses apostrophes? Albertsons, Vons, Ralphs--can't anyone use the possessive anymore?)

Credit card companies, facing mountains of bad debt from unpaid consumer bills, are working on ways to eke more money out of cardholders. Among the plans are more annual fees, faster interest accruals and lower bonus levels on cash-back and points programs. The moves are intended to maintain revenue streams to offset the expected bad debt.

These plans by credit card issuers come as Congress actively curtails numerous credit-card company business practices in a consumer protection move. Issuers will find it much harder to charge fees and raise interest rates on borrowers, moves that used to create a large segment of industry revenue. The reform bill has cleared the Senate and may be signed into law in the coming days.

Apparel retailer Abercrombie & Fitch responded to economic pressure by announcing a plan to lower prices on many of its clothes. The chain, which caters to upmarket teens, had previously defied market trends by prominently staying the course with its high-end merchandise. Just weeks ago Abercrombie was still "protecting its brand" by keeping prices high.