Price Rite Club takes a bite out of warehouse competition - Big Vi Supermarkets Inc. opens Price Rite warehouse store, Fishkill, New York

Discount Store News, Nov 2, 1992 by Laura Liebeck

FISHKILL, N.Y. -- Big V Supermarkets, operator of 27 Shop Rite food stores in the Hudson Valley region of New York state, took a preemptive strike against warehouse club competition entering this upstate market by opening its own version of a membership club.

The supermarketer opened the first Price Rite warehouse club here Oct. 10 as a "test pilot store." There are no expansion plans for the concept at this point, said the company.

Compared with other warehouse clubs with over 100,000 sq. ft. of floor space. soaring ceiling heights and merchandise assortments that span from pickles to tires, Price Rite is smaller and its product mix more limited.

The new warehouse club entry is house in a 30,000-sq.-ft. former Shop Rite supermarket store in a small strip center adjacent to a regional mall anchored by Service Merchandise and Jamesway. A Sam's Club--and the area's first Wal-Mart--will open less than one mile away in the coming months. BJ's Warehouse Club is scheduled to open sometime next year. That site is now being cleared.

The company said the sku count at Price Rite totals 2,500 items in both food and non-food categories in popular name brands as well as Shop Rite's own store label. The floors are a brightly painted gray cement and the fixtures are standard warehouse racks.

In grocery, Price Rite carries general grocery products, frozen foods, fresh meat, produce and dairy. The store features two walk-in refrigerated departments, located side-by-side at the center rear of the store behind the frozen food section: one each for produce and meat with some bulk cheese products located in the meat area. These small departments offer limited selections of prepackaged food-stuffs.

There is no made-to-order deli counter, scratch bakery or fish department.

Price Rite also carries health & beauty care items, electronics--including one bundled computer system and a handful of televisions by Emerson and one by GE a book area with books priced up to 85% off manufacturer's list prices--including General Norman Schwarzkoff's bestseller for $15--selected prerecorded videotapes, and a limited selection of home and office supplies, mostly paper products.

The store offers no apparel, jewelry, toys, sporting goods, or heavy equipment such as car and truck tires, white goods, lawnmowers or grills. Hardware and automotive skus are limited and one endcap had a few trim-a-tree decorations.

Price Rite was created to meet the requests of Shop Rite customers for club packs and giant-sized merchandise, the company said.

As with other clubs, Price Rite charges a fee to shop its aisles. However, Shop Rite Price Club members, who get price discounts with the card rather than having to cut coupons from the store's flyers, receive free membership for a limited time if they complete a club application form.

For $19 per year, individuals, business owners, professionals, non-profit organizations, government agencies, credit unions and labor unions may join Price Rite. Card-carrying members are entitled to visit the store, accompanied by as many as two guests per visit. Membership does not come with check writing privileges. Members must complete a separate form to permit them to write checks for their purchases.

On opening weekend, lines formed on the sidewalk trying to get into the store. Most people filled their carts with food, paper products and assorted H&BC merchandise.

Customers enter the store from the right side of the building. Hard lines-oriented merchandise, such as the computer system and the TVs are on the first aisle. A videotape kiosk selling a bottled water system is located in the rear right corner. Packaged food and then H&BC follow. The center of the store features the frozen food section. Pet food and paper goods occupy most of the left side, dairy is at the back wall, and breads are located at the far left front, adjacent to checkout.