Bill Hanifin

Wal-Mart Boxed In By Price Positioning

April 16, 2010

FROM RETAILWIRE:
Recently, Wal-Mart announced it was rolling back prices on thousands of items in an effort to rejuvenate a business that has reported disappointing results in recent quarters. Does Wal-Mart's price positioning make it more difficult for the chain to raise prices on items than many (most) of its retail competitors?      [more...]

Walmart supports its price driven strategy by supply chain management and is notorious for being a tough negotiator with suppliers.

If there is price pressure on the supplier side that, for some reason, unexplained Walmart cannot suppress, then their low price strategy might be at some risk.

There can only be one price leader in an industry segment and Walmart is it in their category. Target has an edge in shopping experience and, if they can chip away at the perception of price difference, consumers may opt for Target over Walmart.

I'd like to know if the supply chain management strategy has run its course for some reason we did not anticipate.