Wal-Mart chops prices in bid to lure shoppers: Has benefited from shoppers trading down

Source: CNNMoney

No. 1 retailer to offer discounts of up to 30% on groceries, other items ahead of Super Bowl weekend; more cuts ahead.
By Parija B. Kavilanz, CNNMoney.com senior writer
January 29 2008

NEW YORK (CNNMoney.com) -- Wal-Mart announced Tuesday that it will chop prices between 10 to 30% this week on groceries, electronics and other home-related products in an effort to keep its cash-strapped consumers excited about shopping.

While its rivals, including Target (TGT, Fortune 500), have seen sales decelerate dramatically in recent weeks from a consumer spending slowdown, Wal-Mart (WMT, Fortune 500) has been benefiting from more shoppers trading down to its discount stores. The world's largest retailer recently reported that its December same-store sales rose 2.4%, which was at the high-end of its expectations for the month....

"We all know economic times are tough so our plan is to help with added savings throughout the year, focusing especially on what people want, when they need it," said John Fleming, Wal-Mart's chief merchandising officer....Wal-Mart spokeswoman Melissa O'Brien told CNNMoney.com that this month's week-long additional price cuts are "the first of more to come."

In addition to the extra discounts on "thousands of products," the retailer said it will offer no interest for 18 months on purchases of $250 or more with a Wal-Mart Credit Card....

Read more: http://money.cnn.com/2008/01/29/news/companies/walmart_pricecuts/index.htm?postversion=2008012908

LOL!! How about keeping them excited about trying to put food on the table and pay their bills?

RAH RAH RAH!!!

being encouraged to buy more.

...and I'm not the least bit surprised that its Wal-mart.

their own employees won't be able to afford to shop there.

I guess that's why they're investing so heavily in the Asian market now.

I recently read a book by Bentley Little called The Store.
A very dark, disturbing and extreme view of what happens when you bow down to corporations
trying to rule Americas Cities. I thought of Wal-Mart the entire time I was reading it.
I personally do not shop at Wal-Mart. Peace

but I'm fortunate enough to be able to shop elsewhere. When Wal-Mart shopping is discussed here, usually many say they don't shop there, but others say it's affordable for them.

they shut down so many other retailers it is scary.

that does sound interesting!

forces suppliers to possibly pay less to THEIR workers as well. Trickle, Trickle all the way down to layoffs and people going to the Govt for assistance. BUT Walmart will profit

A back alley deal between the W.H. and corporate Amerika, is how I see it.

the American people are being gaslighted again.

as a Meijer, Target, another grocery store, 4 gas stations, and 5 banks.

Um, well, that would make the entire store.

My latest bumpersticker...

Slow Down Hillbilly, WalMart's Open 24 Hours!

Love your idea EnviroBat!!!!. That's the funniest thing I've heard in ages.

Momma always said that my sense of humor would git me killed one day...

It has done so much damage to the two small towns in our area. Fortunately our K-Mart is still open, so we NEVER step foot in Wal-Mart. We have to drive 14 miles to Target and other stores, but I would rather do that than give WM a dime.

Should foreign auto-makers not make superior, cheaper cars than domestic auto-makers?

if it means using slave labor to do it?

:P

In 1992, NBC news series Dateline interviewed Glass during an investigation into Wal-Mart's "Made in America" and "Bring It Home to the USA" marketing campaigns.<1> The show aired footage of children working in factories in Bangladesh making clothes destined for Wal-Mart, as well as footage of Wal-Mart stores with "Made in America" signs hung over imported goods. When asked about children in Asia working in sweatshop conditions, Glass' reply was "You and I might, perhaps, define children differently,"<2> and then said that since Asians are quite short, one can't always tell how old they were. Glass was shown photographs of one factory that burned down with the children still locked inside. He responded, "Yeah...there are tragic things that happen all over the world."<3> Glass stormed out of the interview, which was terminated immediately by Wal-Mart. On the CNBC Special "The Age of Wal-Mart" the quote "I see Wal-Mart as a big speeding truck just waiting to hit something" was attributed to him.

http://en.wikipedia.org/wiki/David_Glass_(businessman)

Hey, if I'm missing your sarcasm, I apologize, I'm not usually that sarcasm challenged.

...and I'm sure there are horror stories, keep in mind that if the factories weren't there, the adults and children who work there would be in a worse situation. Clearly, they view the factory jobs as better than the alternatives, which is why they work there.

Why do you want to deprive them of that?

If the government is forcing people to work in the factories against their will, then we have a whole different situation.

Plus, I thought you meant Wal-Mart employees, not their suppliers', in case that clears anything else up.

Wal-Mart also buys from suppliers who use prison labor in China. Guess who runs the prisons? The Chinese military.

I'm not "bashing children who work". I'm bashing the company that operates the factories in which these children work in deplorable conditions. Bear in mind that the American worker is competing for these jobs globally. So yeah, the goods are cheap, but it also holds our wages and benefits way down. That's acceptable to you?

Call me an idealist, but I think there are better ways that we can keep children from starving than giving them no alternative but to work in American sweat shops. Gosh, I even think children should be in school and not forced to work to survive. How is Wal-Mart helping to that end?

But, like David Glass said, bad things happen all over the world.

Is there actually evidence to that effect? Wouldn't the MSM love to get their hands on that?

And I edited the title and content of my previous post somewhat while you were posting, it was misleading.

and people have risked their lives to get it. MSM? Oh, that's funny. You mean like the CBS Evening News brought to you by the good people of Wal-Mart?..:rofl:

Start here:

http://www.laogai.org

THEY DON'T GIVE A FUCK ABOUT CHILD LABOR / SLAVERY

Aside from Stossel, most network news seems fairly liberal to me, with cable news slanting conservative.

what world do you live in? Let me guess - the ignorant world that thinks if it ain't FOX NEWS it's LIBERAL :rofl:

I live in Texas and can think of only ONE left publication in my area, the only one that tells the unvarnished TRUTH

I know a lot of people on the right who don't see the WSJ's editorial board as right-wing, and many people on the left who didn't see Dan Rather as left-wing.

HE'S GONE - funny how repukes still bring up Rather/Browkaw/Jennings - THEY'RE GONE!!!!!!!!!!!

If you look at polls of journalism students, the vast majority of them are left-wing. I'm sure we've both talked to journalists who become journalists in order to "change the world"... in fact, pretty much every left-wing journalism student I've talked to has said this! :P

The traditional media, print and network news, has a seemingly inarguable left-wing bias. There are exceptions (Stossel on network news is the only one that comes to mind), but overall it's left-wing.

Newer media (post Fairness-Doctrine), talk radio and cable news, has a seemingly inarguable right-wing bias. There are exceptions (Air America and Olbermann), but overall it's right-wing, and Republicans aren't doing themselves any favors by calling Fox News unbiased.

I'm libertarian, and I'm bombarded by "use the government to solve our problems, the rich don't pay enough taxes" by left-wing media, and "the war is good and should be fought until victory, close the borders" from right-wing media.

all the libertarian is, is a pot smoking repuke. Go peddle your BS else where.

So I get you just loooooove ron paul huh?

and spit out the koolaid, friend. Everyone deserves a living wage, but the people over there are not getting it either.

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"So what if factory X hires 12 year old Americans to work 100 hours a week for .50 a day. They should just be thankful they have a job."

Welcome to the new "fuedalism".

I find this statement of yours particularly galling:

"...if the factories weren't there, the adults and children who work there would be in a worse situation. Clearly, they view the factory jobs as better than the alternatives, which is why they work there."

The same argument could have been made 160 years ago by any slavemaster; 120 years ago by any sweatshop owner. It was morally repellent then; it is morally repellent now.

What a wonderful choice: either work in brutal conditions, or starve. Get it? THERE ARE NO ALTERNATIVES, and the CORPORATIONS WHO EXPLOIT THESE WORKERS KNOW IT.

This is exactly what spurred the rise of the labor movement in this country: The demand that workers be treated with respect and dignity, and be given a safe working environment and a sufficient wage. That should also apply to anyone who is working anywhere in brutal conditions, especially in China.

(And, Wal-mart employees really aren't that much better off, either, in my opinion...)

http://www.amazon.com/Wal-Mart-High-Cost-Low-Price/dp/B000BTH4KO/ref=sr_1_3?ie=UTF8&s=video&qid=1201639583&sr=8-3

Stores should offer low prices: when those prices don't come along with child/ slave labor, union busting, small town decay, environmental destruction, and ultimately the undoing of local economies Nationwide while a tiny handful of billionaires benefit.

...that I was in a Wal-Mart over the holidays, and I perused the food aisles. This wasn't a superstore; there are just two aisles of food. I noticed that their regular prices of food are significantly cheaper than at my local supermarket. Examples:

2 pound bricks of Tillamook cheese (a good local product) $4.88 compared to up to $8 at Safeway or Kroger.

Underwood deviled ham $1.34 compared to $1.99 at Safeway or Kroger.

Whole grain breads, cereals, organic eggs, everything significantly cheaper than supermarket.

That plus the $4 prescriptions must be very attractive to people on fixed incomes.

Remember the scene in Gone With The Wind, where Scarlett hollers "I'll lie, I'll cheat, I'll steal, but I'll never be hungry again!" or something like that? I suppose that for many people, buying food at Wal-Mart is significantly more honorable than those other steps. There, but for the grace of God go I. I might have to do it too, one day.

Haven't tried it though. They built the new supercenter so far awway it is hard to get a hook up for a ride.

I'm in Wal Mart fairly regularly when I cart my in-laws out for their shopping expeditions. They, BTW, regard Wal-Mart as the "expensive" store and prefer to patronize Aldi's. Since I'm at Wal Mart anyway, I stock up on stuff I find to be a good value there. Here's what I've found.

Prepackaged food such as ice cream, crackers, cookies, cereal, etc. is usually a good deal at Wal Mart. Much of this is junk food that we don't eat often.

Fresh meat is low grade, injected with saline, and packaged with carbon monoxide to keep it fresh. Won't touch the stuff. Pre-packaged meat is often very low grade or in smaller packages than at the other store. Once I bought a package of bacon at Wal-Mart--our usual brand--at what I thought was a very good price. But the Wal-Mart package was only 12 oz instead of the 16 oz package we get at our usual grocery and the bacon turned out to be weird and misshappen. No wonder it was so much cheaper.

Produce is hit and miss. Sometimes you get fabulous deals on something unusual such as leeks. Usually the prices are just below the local grocery. Much of it seems overly old and overly waxed. The organic vegetables in particular seem to always look limp and on the verge of spoiling. Often the selection is missing vegetables I'm looking for such as turnips or romaine lettuce.

Many items I regard as essential for a healthy diet (our healthy diet, anyway) are either missing or overpriced. They don't stock Benecol. Steel cut oats only come in the high-priced fancy canned variety--our local grocery sells it in bulk. Nuts tend to be old, stale, and overpriced except at Christmas. No Dannon plain non-fat yogurt. Our favorite brand of OJ is priced higher.

It's your principles...or rather, the lack of them.

I'm still not buying.

Fuck you very much.

not if i have anything to say about it.

will have his pay cut down to 50 cents for a 20 hour work day.
The Walton family are all multi-billionaires and I save a quarter on a box of nails.

Global "free" market enterprise working for everyone!

i.e., the walmart business model eventually will collapse, as do all feudal systems. Replaced by a competitor who pays a sustainable wage and provides excellent service and better quality, even if the price is higher

Bring the revolution, and bring the day.

very, very slowly, but I am seeing it in the grocery side of things. Wal Mart will never completely go away and in some respect they have done a few good things along the distribution line (such as embracing technology) but they are something akin to the Soviet Union, to big and unable to react to changes in the market place.

.

I am not spending 1 dime more then usual and I recommed that everyone else does the same, either pay already existing bills with it or put that money in your savings account.

and they're listed in the Blue Fund so am happy w/ that!

that keep coming on line that's the major problem with china....the planet just cannot take it

Where they proudly announced that one sale item was plasma teevees for the Super Bowl. It's like a payday loan, enticing people to spend their rebate before they even get it on something useless that will take them deeper into debt. The proceeds go to the Waltons and China. The Waltons get a tax cut, and if the GOP has their way, they even get a rebate check. No wonder they can't fix the economy. It's already fixed.

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