Walmart waging price competition war – Good for consumers!
February 27, 2017 – Wal-Mart is waging a price competition war against all its rivals. Walmart is one of the biggest retailers in United States of America. Founded in 1962, it is the top retailer in USA in terms of generating revenue. Their last year’s revenue was above $480 billion. Even though this revenue is less than their previous year’s revenue, they are still making the most money in US supermall business. They have more than 10,000 stores worldwide! With a workforce of over 2 million employees, Walmart is one of the biggest employers in the world. A lot of their income is coming because they are providing very competitive prices on a lot of items.
A report was published today on a major news agency. In this report, an anonymous source told the newspaper that Walmart has launched a special competitive price testing campaign in selective US states. The company is carrying out these tests to see the impact of competitive pricing on sales. Unnamed source told the newspaper that Wal-Mart is targeting the price gap with another retailer, Aldi. Founded in 1913, Aldi is one of the biggest supermarket retailers in Germany and they are now expanding their business in USA. They currently have approximately 2000 outlets in United States. In terms of annual revenue, Aldi is behind Walmart by some $400 billion; however, Aldi’s competitive pricing is attracting more and more customers in USA.
To stay ahead in grocery selling business, Walmart has decided to run some tests in different states in USA. In these tests, the supermarket-king is testing how it can attract more customers by reducing the price on several everyday use grocery items. The company is aiming to attract more buyers and in the process, it will most probably reduce its revenue. They have brought down the prices to levels where they aren’t able to make much profit for themselves. So they are asking the vendors/suppliers to step by their game.
The source told the media that Walmart sat in a meeting with top vendors to discuss how they can reduce the pricing and how they can make product delivery process more efficient. Wal-Mart wants vendors to deliver orders on time, so that it can save money on reorders. The company also don’t want to show “out of stock” sign to customers; something Walmart can easily avoid if the suppliers are providing shipments in full and on time.
This latest round of price-cuts by Walmart is good news for consumers! Go buy your grocery for super-cheap rates!