Wal-Mart is cutting the price on about 10,000 items -- mostly food and other staples -- by an unspecified amount. While some analysts suggest that a recent slump in sales might be attributed to the
company having difficulty retaining the middle-class shoppers it gained during the peak of the recession, Miguel Bustillo and Timothy W. Martin report, the company says that's neither the case nor the
reason for the current reductions.
Company executives say sales dropped because of a general decline in food and electronics prices. They also feel that the economic downturn still has
legs, and that consumers will be price conscious in the coming months. "We felt we needed to increase the intensity and excitement with our customer, especially the feeling that Wal-Mart has great
deals," says CMO Stephen Quinn.
Wal-Mart is asking suppliers to reduce what they charge the company. In return, it will spotlight the products as part of its price "rollback" effort,
which is being heavily promoted with both a media campaign and placards in the aisles of its 3,700 U.S. stores.
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