Has Walmart lost its low price edge in the U.S.?

An earlier post points out that, despite hard times (or perhaps as a sign of them), long-time customers are fleeing Walmart in search of cheaper prices. The Consumerist argues that the reason the company can no longer offer the lowest price is that there are now too many Walmart stores too close together.

Now, however, where there seems to be a Wal-Mart every four feet, leaving no more room for more stores. The expansion of stores has declined, and so have their sales. It’s had to raise prices to compete and appease shareholders, but customers don’t go to Wal-Mart for rising prices. They go for low ones, and so, declining sales.

Once they don’t have the lowest prices around, what do they have? There are no cheap meatballs like at IKEA, there isn’t any other attraction to bring in shoppers, and consumers come in less and buy less.

AdAge notes that research by Morgan Stanley last month reported that 60% of Walmart shoppers don’t believe the retailer actually has the lowest prices anymore. Another by WSL Strategic Retail found a whopping 86% felt that way.

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About Guy N. Texas

Guy N. Texas is the pen name of a lawyer living in Dallas, who is now a liberal. He was once conservative, but this word has so morphed in meaning that he can no longer call himself that in good conscience. Guy has no political aspirations. He speaks only for himself.
This entry was posted in Culture, Economics, Finance, Income inequality, News. Bookmark the permalink.

One Response to Has Walmart lost its low price edge in the U.S.?

  1. hortonw says:

    “The expansion of stores has declined, and so have their sales. It’s had to raise prices to compete and appease shareholders…”

    Economics fail!! With whom is it raising prices “to compete”?

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