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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: kumar who wrote (42834)5/21/2001 12:39:09 AM
From: LindyBill  Read Replies (1) of 54805
 
Kumar, what they do is raise prices, then "discount" for the club card. If you don't use the card, it costs you a heavy penalty. The problem is, with grocery stores, you want to use one near you. In LA, three out of four of the markets near me had these cards, and the one that didn't was short a lot of things I wanted to buy. It really forces you to use the card.

It is such a huge advantage for the stores that most of them are going to the cards. Costco, and other membership stores, already have this built in to their marketing program.
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