Grocery wars: stores statewide are competing for their market share through discount cards, expansions and remodels.

• Author: Ellis-Knapp, Jody
• Position: Company overview

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Longtime Alaska residents can probably remember the days of having just one or two grocery stores to choose from. Prices were high, winter produce usually came in a can, and selection was limited. Those days are gone, however, and modern grocery shopping in Anchorage is fast becoming as competitive as the Lower 48. In addition to Carrs-Safeway and Fred Meyer, as well as the ever-popular Costco, Wal-Mart has brought its "Supercenter" concept to Alaska, pushing the competition up yet another notch. Businesses are working harder than ever to bring consumers into their stores with new and innovative ideas, incentive programs and price cuts. This should mean good things for consumers, but what does it mean for the stores in question?

CARRS-SAFEWAY

Carrs-Safeway is a landmark in Alaska grocery stores. Originally opened in 1950 as Carrs, it was purchased by Safeway in 1999. Anchorage District Manager Glenn Peterson has been with the company since 1975, and was a major player in the chain's growth and changes implemented over the years. "We are always looking for new things that appeal to our customers," he says. He feels the merger with Safeway has been very positive, with more than $200 million in upgrades put into the Alaska stores over the years, including a statewide remodel with a "Lifestyle Store" theme. The new design includes recessed lighting, a hearthstone bakery, fireplaces in the Starbucks seating areas and a European feel throughout.

Peterson states customer feedback is an important part of what makes Carrs-Safeway a top producer in Alaska. "We stay in touch with what consumers want via customer feedback, as well as focus groups both in Alaska and Outside." Enhancements such as the gift card kiosk have received excellent response, as well as the Club Card Program, which partners with Alaska Airlines for mileage and, according to Peterson, "gives the value to the consumer so the consumer wins."

Peterson also cites the employees of Carrs-Safeway as being essential to staying on top of the competition. "The merger with Safeway brought in fantastic people from both companies. We put a focus on customer service and that is reflected in our employees."

In addition to the current remodeling of its stores, Peterson states that Carrs-Safeway will continue to grow and change with the times. "We always want to be proactive to our customers needs. Many years ago, we even sold firearms. Now we have fuel stations for customer...