Countdown to Elections of Bash, Coffey, & Ferrie ;)

Sunday, March 21, 2010

Walmart and Winco - Price Wars

Interesting how I thought of the future of this blog...and how articles pop up with the same underlying ideas. http://www.time.com/time/business/article/0,8599,1973201,00.html
Time Magazine: "Walmart, Suffering a Rare Slump, Fights Back on Prices" by Sean Gregory.

Several blog postings ago I asked the question, how will Walmart compete in grocery prices against the likes of self-proclaimed "SuperMarket Low Price Leader!" WinCo Foods?

Excerpt:

At WinCo, a huge sign trumpeted that a 42-ounce box of Quaker Oatmeal cost $2.48.
A similar sign stood at Walmart — Quaker Oatmeal, 42-ounces, $3.12.

Of course, Walmart won't get pounded on price for long. "The time has finally arrived!" Weinswig wrote in a research note. "WMT [Walmart's stock symbol] is lacing up the gloves in the fight to win the modern day price war in food retail in 2010." Weinswig found that a 2-liter bottle of Coca-Cola, which recently cost the consumer $1.58 at a New York City-area Walmart, was now selling at the same store for 98 cents. "You're not going to ignore that," says Weinswig. "That's 'wow' pricing, and you'll think twice about going somewhere else.'"


Related story: http://www.financialadvisory.com/article/15-03-2010/762/citigroup-%28nyse-c%29-analyst-upgrades-wal-mart-%28nyse-wmt%29-on-food-discounts-apparel-strategy/

Excerpt:

"The grocery strategy for Wal-Mart is an obvious one, and something their competitors have never been able to match, and probably will never be able to; although they do give them a pretty good run for their money, especially with the power shoppers who pay attention to prices on individual items from store-to-store, which Wal-Mart isn't always the price leader on."

So back to my idea: Seeing as I'm < 10 minutes from the future Walmart(Cornelius), Fred Meyer(Cornelius), WinCo(Hillsboro), and Safeway(Forest Grove). I plan to comparision shop to see how the businesses compete with one another on price alone. Standard grocery list items I would shop for and compare them side-by-side. Who has the greatest selection of said items? What do they carry? What size do they carry? Etc. The options of comparision are limitless. I'll do my best not to be biased. Though I think Walmart can learn to be nimble and can go lower than any competitor, offering us any items we desire, as long as we come back to them each and every week -- like any smart business would. Let's see if they Listen.

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