Wal-Mart Sends Message With More Price Cuts

Posted by Paul Christ October 21, 2009

Wal-Mart Announces Price Cuts for Holidays (MSNBC)

As we discussed in our recent post on Wal-Mart’s pricing of books, it was likely their price cutting was not finished and that turns out to be the case. They have expanded price cuts across many product groups and this is almost certainly going to impact many other retailers and should make for a hotly contested holiday season.

Wal-Mart has frequently used its buying power to undercut rivals. It sells enough products in enough categories to make up for any losses on individual items that it uses to pull people into stores or onto its Web site.

Same question as the last time, what retailers are most likely to feel the pain of Wal-Mart’s pricing strategy?