Wal-Mart Stores Inc. (Bentonville, Ark.) has announced it will reduce prices 15 – 30 percent, effective immediately, on about 100 consumer electronics products.
The sharp reductions include $500 off a Panasonic 42-inch HD plasma television and $300 off a 37-inch Polaroid LCD television.
“You are going to see the reinvigoration of the rollback because that conveys value and we want to get that message across,” said Gary Severson, senior vp, electronics.
He said the rollback message will pepper the aisles of Wal-Mart’s 4000 stores over the next two months.
Wal-Mart, which relies on circulars in newspapers, will advertise the discounts in mailings to shoppers and, in an unusual tactic, employees will hand out fliers in the stores directing shoppers to the cheaper toys and electronics.
Wal-Mart expects zero same-store sales growth this month, which would represent its weakest performance in nearly a decade. It reported sales growth of just 0.5 percent in October.
The return to the low-price emphasis suggests a shift in Wal-Mart marketing efforts. Over the last year, the discounter has played down its traditional ad campaign — featuring a sword-wielding, price-slashing smiley face — and turned instead to sleek pitches tempting customers to buy silk camisoles and 300-thread-count sheets.
The discounts on televisions, laptops and cameras, traditionally reserved for the day after Thanksgiving, could touch off a price war as rivals like Target, Best Buy and Circuit City may find they have to match the move of the nation’s largest retailer. Everyone’s profits could suffer from such a war, especially if consumers delay buying in hopes of deeper price cuts to come, as they often do.
In a statement, Target said it would “continue to gain market share by delivering consistent merchandising excitement and compelling value to our guests.”
And a Best Buy spokesman said, “it’s not just low prices people are looking for” when it comes to electronics like televisions, but also professional installation and strong service, areas where he believes his chain “has a big advantage.”