L.A. Buy Low Wholesale to open its first Utah location

Deseret News (Salt Lake City), Dec 17, 2008 by Laura Hancock Deseret News

A grocery chain promising cheap prices by cutting out middlemen in produce and meat sales is entering the Utah market, with a store in Provo and plans to locate other stores in the Salt Lake City and Ogden areas.

Los Angeles Buy Low Wholesale Inc. will open its first Buy Low Market in Provo at the Plum Tree Shopping Center, 2250 N. University Ave., in February, said Jim McCaleb, who will be the Provo store's director.

McCaleb described Buy Low Market stores as "plain, friendly, well- stocked stores" that will have prices comparable to Wal-Mart, especially on Wednesdays, when produce will be on sale, and Fridays, when meat is on sale.

The store specializes in cheap meat and produce and has joined Associated Foods for other shelf items. Buy Low Markets' competitive advantage is buying directly from meat-packers and farmers, McCaleb said.

"We'll go to the local farmers here in Utah and negotiate to buy their whole pumpkin crop or their whole corn crop," instead of buying through a wholesaler, said McCaleb. The Provo store will have two refrigerated trucks for picking up produce and meat.

Buy Low Market intends to purchase meat from packers but won't repackage the meat with Buy Low Market labels. That will keep the meat cheaper, McCaleb said.

Buy Low Markets currently has stores in Los Angeles and Las Vegas. The company believes it will be successful in Utah because of the large families seeking deals. The Provo store will not sell alcohol or tobacco products, unlike other Buy Low Market stores, because sales will probably not be high, McCaleb said.

"There was no point to carrying beer or tobacco products," he said. The Provo store will hire at least 100 people.

McCaleb isn't worried about opening the store in midst of a recession. He believes the low prices will draw customers.

"I think people in a recession want value more than ever," he said.

E-mail: lhancock@desnews.com