Just when you thought prices couldn't go lower, Walmart announces a new round of cuts. CMO Stephen Quinn was quoted in WSJ as saying:"We felt we needed to increase the intensity and excitement with our customer, especially the feeling that Wal-Mart has great deals."
Clearly, Walmart's objective is to reinforce its super-discount positioning. Analysts have recently noted that shoppers may be returning to their usual buying patterns--going to local supermarkets rather than going out of their way to visit Walmart. Many grocery chains have already stepped up their sales and promotions to lure once-loyal customers back.
Although Walmart has incredible buying power, and its revamped stores put food front and center (literally), rising gasoline prices may be one reason why shoppers are reluctant to drive further to Walmart. A quick trip to the nearby supermarket may seem faster, cheaper, easier.
Will Walmart's price cuts do the trick?
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