Wednesday, April 15, 2009

Walmart's pricing strategy

[ Walmart makes no cents ]

April 15, 2009 | By Canadian Press

Canadian shoppers are tightening their budgets and looking for ways to calculate costs before reaching the register, and Walmart Canada says that has inspired the company to remove decimal points from top-selling items.

This week, a price round-off campaign will gradually start changing items sold at prices that go to the cent—$1.99, $8.43 and so on—in favour of easier to understand price marks such as $1 and $8.

“Right now, our sense is that it’s a rare customer who doesn’t come into our store with a budget,” said Jeff Lobb, vice-president of marketing for Walmart Canada.

More people are walking into Walmart with “a list that’s going to guide their purchases, potentially even a calculator, and a competitive flyer,” he said.

The company has responded by unveiling a new ad campaign it hopes will simplify the process of tallying a shopping list before taxes.

Walmart said that while some product price tags will be rounded up, most will be going down.

“Our strategy is very much to default [the price] down. This is not a round-up exercise in any way, shape, or form,” Lobb said.

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