No doubt, Wal-Mart’s relentless
commitment towards its low pricing strategy has always had more impact on the lives of America’s working classes than Uncle Sam itself. But since last few years, it seems as if this retail behemoth is not at its best. It has been struggling to revive its once vibrant sales growth. Last year it even tried to play down on its discount roots and sell higher margin goods, but all in vain. Before it could get something out of this strategy, the liquidity crunch in the economy forced it to return back to its low pricing strategy. Wal-Mart had to allow deep cuts in prices by as much as 50% on most of items to boost sales at its US stores. No doubt, the price cuts attracted customers but at the same time, they hurt margins too. To crown it all, with credit crunch further tightening its grip over the US, the once vivacious American working class is now under hospice care. And the retail behemoth needs to dramatically reposition itself in light of emerging macroeconomic realities in the land of ‘Uncle Sam’.
For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
commitment towards its low pricing strategy has always had more impact on the lives of America’s working classes than Uncle Sam itself. But since last few years, it seems as if this retail behemoth is not at its best. It has been struggling to revive its once vibrant sales growth. Last year it even tried to play down on its discount roots and sell higher margin goods, but all in vain. Before it could get something out of this strategy, the liquidity crunch in the economy forced it to return back to its low pricing strategy. Wal-Mart had to allow deep cuts in prices by as much as 50% on most of items to boost sales at its US stores. No doubt, the price cuts attracted customers but at the same time, they hurt margins too. To crown it all, with credit crunch further tightening its grip over the US, the once vivacious American working class is now under hospice care. And the retail behemoth needs to dramatically reposition itself in light of emerging macroeconomic realities in the land of ‘Uncle Sam’.For Complete IIPM Article, Click on IIPM Article
Source : IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
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