March 28, 2005
GetGo Competitors Complain
When I moved to Pittsburgh, I noticed GetGo , a chain of gas stations partially owned by Giant Eagle. At first I didn't care much, but then I found out that for every $50 you spend at Giant Eagle, you get $.10/gallon off at GetGo. (This is all tracked using the Giant Eagle Advantage card.) I shop at Giant Eagle, so I was pleased to learn this, and also admired them for shaking up the stagnant gas market. (I asked my parents a couple of times while I was growing up why gas stations never had sales or coupons.)
So how do GetGo's competitors respond? Do they innovate and improve their business model? Of course not. Why do that when you can use the state government to try to end GetGo's discounts ?
The Petroleum Retailers and Auto Repair Association of Pittsburgh contends that the grocery chain is violating the Unfair Sales Act, a 1941 state law that prohibits selling merchandise "at cost or less than cost in order to attract patronage."
Selling things at a loss to attract business is illegal in Pennsylvania? In that case, all video game consoles ought to be banned. Also, we better stop Best Buy and other retailers from using loss leaders to get people into the store each week. Give me a break. I doubt that Giant Eagle is actually selling below cost, but even if they are, these crybabies need to go home.
Posted by Dirtae at March 28, 2005 11:56 PMWith gas in New Jersey selling (at full service stations) for 30 cents a gallon less than at Pittsburgh area stations and apparently not suffering, it is unlikely that Giant Eagle is selling below cost.
Posted by: Matt at March 29, 2005 10:39 AMGotta love the funny rules that every state has. Heehee.
Posted by: Belinda at March 30, 2005 04:52 PM
