Wal-Mart Rollbacks: Real or Not Really?
The holiday season is coming up and Wal-Mart is dropping
prices on key items including televisions, toys and turkeys. The company
has been churning out press releases in recent weeks to announce the latest
rollback designed to help consumers “Save money. Live Better.”
Hastings, a consumer strategist for Global Hunter Securities LLC, told Bloomberg, “This
is the proven and effective method they deploy using major categories to
drive loyalty and to take marginal sales away from the competition.”
wonder if Wal-Mart’s price-cutting will be the final nail in the coffin
(the chain recently started selling those) of struggling retailers. Others
have suggested that Wal-Mart is following its traditional pattern and that
this year’s rollbacks are pretty much in line with the past but that the
company’s public relations machine has made it appear to be something bigger.
chain’s stores in the U.S. are selling turkeys for 40 cents a pound, about
a third of the average price of birds in 2008, according to the American
Farm Bureau Federation.
“We’re proving that we’re committed to helping
moms afford the holidays in these tough economic times,” Jack Sinclair,
executive vice president, groceries, Walmart, said in a press release.
Wal-Mart is selling a Sharp 46-inch television, which
normally retails for $1,158, for $698. The company also announced this
week that it was lowering prices on 100 additional toys.
“We’ll offer aggressive
pricing on toys this season to ensure moms can afford the gifts that help
create a holiday their kids will remember,” said Laura Phillips, vice president
of toys for Wal-Mart, told the Arkansas Democrat-Gazette.
Questions: Is Wal-Mart being more aggressive with its pricing this year
versus past holiday seasons or is its media machine creating an impression
of more dramatic rollbacks than actually exist? As
a competitor, how would you deal with the moves Wal-Mart is making?
Turkeys to Televisions, Walmart Announces New Savings on Thanksgiving Meal
Favorites and Electronics – Wal-Mart
- Wal-Mart Fires Second Shot in Holiday Toy Wars – Arkansas
- Walmart Cuts Turkey, TV Prices to Grab Holiday
Sales – Bloomberg