Ralphs Grocery Co. unveiled a lower-price policy Wednesday in what it said was a nod to beleaguered consumers struggling to pay rising food and gasoline prices. But the new plan also appears to be part of a wider business strategy to grab market share from rivals that has worked successfully for Ralphs’ corporate parent in other regions, the L.A. Times reports.

The chain, which operates 262 supermarkets in Southern California, said it would lower the prices of thousands of goods that its customers buy most often. Additionally, it will retool its loyalty card program so that shoppers gain points based on purchases and collect cash rebates. The grocer has also changed its double coupon program, capping the savings a shopper can garner.

In moving to a lower-price strategy, Ralphs is trying to deal with intensifying competition for grocery dollars in Southern California and overcome its reputation as one of the higher-priced traditional grocers in the region.

It is dealing with new entrants such as Sprouts Farmers Market, a Phoenix-based purveyor of “natural” and organic food, and Fresh & Easy Neighborhood Market, a unit of British retailing giant Tesco. At the same time, discounters such as Target Corp. and Wal-Mart Stores Inc. continue to move into the packaged and frozen food market.

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