Food Lion is looking to pursue a focused low cost provider

Food Lion has has launched a low cost provider strategy designed to bring prices down in it's 1,300 stores.   The company is reducing expenses by 256 million and funneling most of those savings into cuts in food prices.  The reductions will range across several categories including cereal, produce, milk, and bread.  This new strategy is aimed at competing against it's biggest rival Wal-Mart.  It's the intent of Food Lion to be the low cost alternative to it's competitors giant super centers. 

The idea is a solid strategy given that Food Lion has multiple stores located in every town or city they operate in.  Unlike Wal-mart who has one super center in every town or small city.  Many people don't want to travel to a Wal-Mart when they can stop in a local Food Lion that has comparable prices.  They also don't have to fight their way through a giant store to find the grocery items they want.  In this depressed economy it's a good strategy to compete against Wal-Mart.