Holiday Price Wars Could Make Consumers Big Winners

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November 10, 2009

Major retailers are poised for a no-holds-barred price war to win consumer loyalty and their shrinking disposable income earmarked for holiday shopping.

Wal-Mart promises “hundreds of millions of dollars in price reductions” on everything from produce and groceries to toys and clothes. “Many of these prices represent the lowest we’ve offered in years,” said Eduardo Castro-Wright, vice chairman of Wal-Mart, in a company statement. “We will not be beaten on price.

Recently, Meijer responded to Wal-Mart’s bold statement with full-page ads with a Halloween motif that said, “Unbeatable? Don’t be Tricked,” according to an MLive.com report. Meijer said it is ramping up value with an Everyday Best Price program, which is reducing prices on more than 19,000 items, according to the report.

“The bottom line is that it will cost you less to shop at Meijer than it did before,” said J.K. Symancyk, executive vice-president of merchandising. “This sale-pricing program will help further cement our standing as a low-price leader among national and regional grocers and retailers.”

Several of Meijer’s newspaper ads have displayed side-by-side price comparison of several Wal-Mart food products advertised in its Sunday circular. “If you shopped Meijer for these items you saved $5.77,” the ad claimed.

Meanwhile Wal-Mart also has been running ads showing how their Great Value store brands can yield meals for a $1 or $2 a serving.

Target Corp., the nation’s No. 2 retailer, now is offering low-price guarantees in its ads, focusing on prices over image in its advertising.

Wal-Mart set off the price war several weeks ago when it announced it would be selling 10 soon-to-be released bestsellers for $10; immediately Target and Amazon.com cut their prices to match Wal-Mart’s.

And the price war rages on.

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