Posted on 03/19/2010 8:16:19 PM PDT by STARWISE
Wal-Mart Stores Inc will cut food prices and mount a new ad campaign over the next six weeks, a threat to other U.S. grocers that sent an industry shares index down more than 2 percent on Friday.
A Morgan Stanley analyst first reported the world's largest retailer's plan, calling it a major setback for other U.S. grocers, and the company confirmed the promotions in an email.
"While this helps address Walmart's traffic woes, we view this as a major setback for the grocery stocks, which have been rallying on hopes of a return to more rational pricing," Morgan Stanley analyst Mark Wiltamuth wrote in a note on Friday.
The Standard & Poor's Food Retail Sub-Industry Index closed down 2.2 percent.
Walmart has used aggressive pricing in grocery and other units to bring shoppers into its stores. The grocery business is particularly pressured by such pricing, as its profit margins are already low.
Investors in Walmart have been concerned about signs that shoppers who gravitated to its stores during the worst of the recession -- boosting sales and profits -- are returning to rivals. Traffic fell in Walmart's U.S. stores during its fourth quarter, despite the holiday season, when shopping is at its peak.
(Excerpt) Read more at reuters.com ...
I remember it well. It was just about this time last year when they announced they would gradually raise prices.
Exactly! The prices went up because of transportation costs, and then they stayed there.
The grocery business is particularly pressured by such pricing, as its profit margins are already low.
Your comment:
I don’t know about where you live, but W-M has been raising prices for the last year. Thus lowering them is just getting back to regular prices.
Same here, where everything is a dollar more than in grocery stores in the rest of the country.
Yes, that is the price whether you have insurance or not. Can get even cheaper per dose some places by utilizing a 90 day script.
Minimum wage has gone up, gas is high and Wal-mart is non union. The government regulations may well force many companies to raise prices or leave the USA. Regulate them out of the country.
It would damage the economy in the area I live because they hire so many elderly here that would not be able to find a job anywhere else. Handicapped too and they are open 24/7.
Also, they gave 1,000 dollars to the school here for a Christmas coat drive and do alot more to help those in need
I shop at a Market that feeds you all the way through the store. It’s like a party to shop there. But there is a method to the madness, I always spend more than I planned.
My store has began shelving mostly the most expensive canned or sacked goods. They do have a section along side those of less expensive, but not enough less to warrant buying the cheaper brand.
Looking for another store.
“I’m probably not very bright but I like to buy groceries at the place with the lowest prices.”
I like the best quality stuff at the lowest prices.
Catering to their largest constituency, illegal aliens!
I don’t buy many Chinese groceries.
Above link for What The Experts Are Saying ...
walmartstores.com/download/3097.pdf
Download and open in a pdf document.
.
Walmart Fact Sheets
http://walmartstores.com/pressroom/FactSheets/
You’re not supposed to catch that, you’re just supposed to see that it is almost $5 a bag cheaper.
Thanks. I was wondering how we could turn this thread into a discussion about illegal immigration.
I’d rather starve than give WM one red cent.
brilliant analysis
Walmart’s meat and produce prices are way too high
Democrats had no problem with Walmart until it started carrying groceries. Then it competed with the union stores in the big cities and the party went after it with a vengance.
Shaw’s in my small Connecticut town is closing in a few days. It served us and the town next door which has no grocery store. Union busted it. Supposed to open as something else sometime soon. Hope so as there is only one other store in town.
Well said!
Wal Mart prices go up and down, I guess depending on deals that the Manufacturer gives them. They pass savings on to the customer.
My Mom said it was the same way at the base commissary. One week something would be one price the next week a different price. That is the real world. I worked for a large candy manufacturer and when they had a good deal on a product sales would go through the roof.
I read an article last weekend that said Walmart was competing with Whole Foods for the vegetable and fruit shoppers. Taste studies found them to be comparable and cheaper.
The only reason I mention this is...they are trying to use local small farmers.
I think Wal-Mart has done some damage to the mom and pop operations, but using local farmers could end up being a huge deal.
Democrats had no problem with Walmart until it started carrying groceries
~~~~
Democrats have a problem with Walmart for ONE reason:
they won’t go union.
~~~~~
Current gas prices north of Chicago proper range
from $3.03/gal to $3.49/gal
Those costs, plus horrendous tax increases being levied by every budge-starved municipality these days, affect every retail operation.
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