Walmart Woos Customers With Revived 'Low Prices, Every Day' Campaign

Walmart Woos Customers With Revived 'Low Prices, Every Day' Campaign In this economy, retailers have to fight for every dollar that consumers are willing to spend. One way to do that, of course, is to offer weekly sales. A great deal, whether it's on paper towels or the latest seasonal fashions, helps drive traffic through the front door or to a website.

The problem is that offering good deals on select sale items doesn't always translate into purchases of other items at regular prices with better profit margins. And that can pinch retailers' bottom lines.

So leave it to Walmart Stores (WMT), the nation's largest retailer, to revisit a marketing gimmick it used to great effect once before: "Low prices, every day." The company, which is rolling out a new ad campaign Monday, says it also plans to bring back some 8,500 items that have disappeared from its shelves in recent years.

The so-called "assortment changes" will bring back customers' favorite local food and other products, Walmart said in a statement. The company also plans to conduct more frequent surveys of other retailers' prices on similar goods to ensure its stores offer lower prices on the right mix of items.

"Our company is determined to create the best one-stop shopping experience and low prices on the right products backed by a clear, consistent ad match policy," Duncan Mac Naughton, Walmart's chief merchandising officer in the U.S., said in a statement.

"Walmart is making progress with their re-merchandising, and the launch of the ad campaign shows that most items to be returned are now back in the stores," Sanford C. Bernstein retail analyst Colin McGranahan told Bloomberg News. "Whether that will be enough to lure disenchanted customers back remains to be seen."

Reversing a Failed Strategy


The retailer's prior advertising campaign -- "Save Money, Live Better" -- failed to drive more consumers through the door. Despite its dominance in the U.S. market, the Bentonville, Ark.-based retailer has endured seven straight quarters of falling sales at its stores.

That previous campaign involved neatening stores and reducing the number of items for sale. While that may have seemed a good strategy, it defined shopping at Walmart a lifestyle choice, causing consumers to perceive the popular retailer as moving away from the low prices and variety they had come to expect, says Paul Kurnit, clinical professor of marketing at Pace University.

"The Walmart that we knew three and five years ago was a pretty messy shopping experience, but that was kind of OK, because we knew we were getting the lowest possible prices," Kurnit says. He adds that research shows that more items on retail-store shelves translates into bigger totals at the check-out counter.

Offering customers a one-stop shopping experience that assures customers of low prices on a variety of goods is good strategy in these days of steadily rising fuel costs and economic uncertainty, Kurnit says.

With gas prices at $4 a gallon and higher prices expected, he says, "People are really feeling the crunch."

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trrycrockett

Hey the mom and pop store are also raising there prices just like walmart and everyone else it cost money to get them to delivery it anymore you have freight charges, taxes and with the price of gas going up also your electric goes up you also have alot of overhead these day like someone has to get paid just to watch people stilling all the time and riping the companies offs and people bring back products they didn't even purchase at the stores trying to get money back for that and buying a tv and putting rocks back in the box trying to return it now tell me customs are rude you may try working in custom service and putting up with the other side sometimes then you will know why walmart employess have a attitude. and why don't you think they can't have an attitude and you can?

April 14 2011 at 1:11 PM Report abuse -1 rate up rate down Reply
mmrkcr

It's not the prices that are keeping me out of the store...it's the fact that stores are absolutely filthy and the employees do not have the interest of the consumer in mind. They ignore the shopper until you approach them. If you are lucky, you asked the right employee.

April 14 2011 at 9:24 AM Report abuse +1 rate up rate down Reply
ohslimgoody

Wolf in sheeps clothing as soon as they think they have suckered the people baack in to the lions den, they will raise there prices again. Walmart treats its employees like crap I know a lady that worked at walmart she was 68 she slipped and fell in walmarts parking lot had to have surgery so you know what walmart did they fired her. Second lady was told if she didnt report to work that day because she had tried to call off they told her if she didnt report they would fire her also, well the young lady headed out to work because she needed the job, the poor girl got killed on her way to work in blizard like conditions... Walmart sucks. These are true stories that happen to empployees of Walmart in Fremont oh.

April 13 2011 at 8:50 PM Report abuse +1 rate up rate down Reply
1 reply to ohslimgoody's comment
Jim

more give me give me let me have mind set...More 'hope and change' (how exactly has that worked for ya?) Hey I have an idea.. Lets raise their taxes!! Of course Walmart will respond by raising their prices to pay for the increased taxes, or moving warhouses over seas.. exactly what you folks complain about. Some cities deny Walmart permission to build and open stores {{shaking head}} I guess no job is better than a Walmart job?? You'd much rather see an empty lot with weeds growing than a business there providing jobs and opportunity.. No one holds a gun to your head saying you have to work at walmart.. If you don't like the job, go to night school, apply for gov't grants to pay for tuition, .. get a different job.

April 20 2011 at 8:26 PM Report abuse rate up rate down Reply
DawnellDaugherty

This won't last;with gas prices still going up,this is just a ploy,and this doesn't change how they treat people,and run the business!!!!!!!!!!

April 13 2011 at 7:39 PM Report abuse +5 rate up rate down Reply
finepix1234

In 1951 I had a Chrysler that was stamped on the American Steal fire wall that said, "Made in USA" Gone are those days. RCA Radio, Philco Refrigerator...American Made. Wal-Mart may have brought low prices, but at a huge cost. Most of the last of our "mom and pop" stores, generations of hard work.....Gone, put out of business by a large retailer that cares more about there profits than people. Is Wal-Mart and evil company? I don't know...but in my opinion it's not helping America. Bring back mom and pop stores that are stocked full of American made products.

April 13 2011 at 7:31 PM Report abuse +4 rate up rate down Reply
mily469

i never shop at china mart.

April 13 2011 at 7:09 PM Report abuse +1 rate up rate down Reply
i4u2fer

Until they treat their help than necessary evils and pay them a working wage and not skirt around with insurance benefits that many need that work there, I will continue to just pass on by any Wal Mart store and give my business to others that respect their employees in both pay and benefits.
This is a terrible situation that many cannot get out of at least for the time being and Wal Mart makes this their business model for other corporations that I'm sure study day in and day out.
Hey WM...I mean you upper echelon suits, try and live how you force feed your rank and file employees and see how you like it.
Trouble is, it will never, ever happen with this greedy company.

April 13 2011 at 4:35 PM Report abuse +3 rate up rate down Reply
yorktown1979

Until Americans are willing to work for 50 cents a day like the Chinese do for Wal-Mart, manufacturing is going to remain in China. It would cost the Walton family a fortune to pay U.S. wages to manufacture these goods and they are too greedy of a family to care about the workers of this country or China for that matter. That's why corporations started moving out of Mexico because the Mexican President instituted minimun wage laws. So they went to China.

April 13 2011 at 2:44 PM Report abuse +5 rate up rate down Reply
Rick

Walmart, Walmart, Walmart! What is it with this company? Every 6 months they announce a new program to lower prices. Great free pubicity. If they are really the lowest price retailer then why do they need to keep lowering prices? They may lower a few at first but eventially they raise everything back up again until the buying public notices and then the propaganda starts all over again. If Walmart is so great then why does everyone hates them so much?

April 13 2011 at 2:30 PM Report abuse +4 rate up rate down Reply
2 replies to Rick's comment
DawnellDaugherty

This company is hated for the simple fact that they treat employees and customers like SH..!! I used to shop at Walmart exclusively,until I worked there,and was treated like SH..!! I only shop there now to fill a prescription,which is every two to three months. WALMART SUCKS!!!!!!!!!!!!!!!!

April 13 2011 at 7:44 PM Report abuse +2 rate up rate down Reply
trrycrockett

No matter what we say WalMart is here to stay They are comming out with a small like Grocery stores like winn dixie,white,etc. As for buying only USA made things let me tell you I've worked for a company that made in the USA but they bought the product over seas to make that Product. Where I use to live they are bulding the first 3 story walmart and it is getting ready to open this summer. I'm not giving wal mart a good name because I do shop other places but they have help alot of little towns by bringing in lowes and other restaurants, sams and giving people employment times have change and little mom and paw places can't keep up with the change so some one has to do it.

April 13 2011 at 12:38 PM Report abuse -4 rate up rate down Reply