New Maxway owner tries EDLP to maximize discounter's profits - Variety Wholesalers, new owners of Maxway Corp. discount stores, try every day low pricing

Discount Store News, April 23, 1990 by Mary Ellen Kelly

New Maxway Owner Tries EDLP To Maximize Discounter's Profits

RALEIGH, N.C. -- Variety Wholesalers, based here, has acquired the 35-unit Maxway Corp., Sanford, N.C., with plans to make the chain profitable by employing an everyday low price strategy.

Maxway has been operating under Chapter 11 protection since October 1988, shortly after it acquired the Danners discount store chain.

Variety Wholesalers operates 525 general merchandise stores--similar to Maxway's units--in 14 states under five names: Pope's, Super 10, Super Dollar, Eagles and Allied. John Pope, chief executive officer with Variety Wholesalers, said that with the parent company's assistance, "Maxway will become a profitable growth vehicle."

Wilson Sawyer will continue to be Maxway's president. Sawyer said he anticipated one of the more significant changes in the stores, other than the EDLP policy, will be a greater emphasis on soft lines. Maxway stores currently are 60 percent hard lines. "The merchandise review will probably result in a slight reduction of sku's and more space devoted to soft goods," he said.

Two Maxway stores are currently being closed in Clayton and Claxton, Ga. No further closings are anticipated, Sawyer said. Maxway stores are located in North Carolina, South Carolina, Virginia and Georgia. The size of Maxway stores, on average, is 25,000 square feet, slightly larger than most other stores operated by Variety Wholesalers.

PHOTO : Variety Wholesalers hopes it can make Maxway profitable by instituting an EDLP strategy.