Retail giant Walmart is reportedly putting a plan in place to lower prices and compete more directly with discount chains and domestic rivals.
In an attempt to compete more directly with discount grocery store chains, both foreign and domestic, the retail giant Wal-Mart is attempting to lower prices with an intriguing strategy.
According to Fortune.com, Wal-Mart is conducting a price-comparison test in more than 1,200 of their stores in the United States. At the same time, the retail chain is attempting to renegotiate prices with packaged good suppliers in order to lower prices for consumers.
The price-comparison tests being conducted across the country are reportedly an attempt to find prices consumers are willing to pay for a variety of different products in order to bring more customers into the stores.
Meanwhile, Wal-Mart reportedly also held meetings with packaged good suppliers in Procter & Gamble, Unilever and others to attempt to lower prices by 15 percent, according to Fortune’s sources.
These strategies from Wal-Mart are reportedly an attempt to close the price gap between the retail giant and discount grocery chains such as Kroger, Publix or Aldi. Gross margins have taken a hit in the most recent quarter, and Wal-Mart is trying to find ways to attract more shoppers while retaking market share from discount chains.
Wal-Mart is facing competition on all sides, from its groceries to its online retail presence. The increasing competition from brands like Aldi and Kroger is yet another challenge for the retail company, and it sounds like they plan on attacking the issue aggressively.
