Testing the pricing sweet spot
Walmart shoppers in several Midwest and Southeastern states could be benefiting from a new price-comparison test.
A recent Reuters report unveiled that these tests are operating across 1,200 of the retail-giant’s stores. What exactly are these test all about?
Mums the word
According to Reuters, “[Their] tests are aimed at finding the right price point across a range of products that will attract more shoppers, and then adjusting prices as needed.”
Walmart declined to comment on the exact details of their price-comparison tests or the implications for suppliers.
However, Reuters followed up on these tests with their own random test. The results are good news for wally-world shoppers.
No envelope mix ups here
Across five separate Illinois and Iowa towns, a basket of 15 items cost less at Walmart than at German based grocery store, Aldi.
The company’s latest move in the grocery store price wars comes after increased competition from not only Aldi, but other low-price stores like Kroger.
Suppliers must step up
Besides these price tests, Walmart is also working with suppliers to regain their competitive edge.
Sources told Reuters that Walmart met with suppliers including Procter & Gamble to request a 15% decrease in prices charged to the retailer.
The company also wants suppliers to amp up their logistics with improvements like full and on-time deliveries.
The recent price-comparison test isn’t an automatic win for Walmart and its customers, who must still consider what they value most in a grocery shopping experience. Walmart strives for everyday low prices.
On the other hand, Aldi values low price and a more efficient experience, with less choice and a smaller store space.
Let’s not forget what else is out there. In a time where consumers are spoiled with a number of affordable, on-demand items via Amazon and a well-curated list of munchies from Trader Joe’s, will the low price mantra point be enough? Time will tell as Lidl, another German discount grocery store enters the US, and competitors continue bringing their own unique selling points.
Going back, moving forward
The price comparison test may seem like a safety move. It is after all, going back to their roots in delivering everyday low prices.
[clickToTweet tweet=”Last summer, Walmart purchased Jet.com, an online-shopping company modeled after Amazon Prime.” quote=”However, the company is also moving forward. Last summer, Walmart purchased Jet.com, an online-shopping company modeled after Amazon Prime.”]
The move, signaled a major investment in e-commerce and could perhaps be a good model for businesses looking to stay relevant by combining old selling points with new technology.