Walmart Reinforces Price Leadership with "Low Prices. Every Day. On Everything."

Walmart, the world's largest retailer, announced an innovative plan designed to lure customers back into stores. The plan is not complicated, but rather a back-to-basics approach creating a one-stop shopping experience. Walmart plans to deliver low prices every day, on everything.

The new initiative involves creating price leadership, placing more than 8,500 products back on the shelf and creating transparency surrounding the ad match policy.

The "Low prices. Every day. On everything." tagline, combined with "Save Money Live Better" places a renewed focus on the customer. According to Duncan Mac Naughton, Walmart chief merchandising officer, customers want the "right products in a one-stop shop."

The news of Walmart reinventing itself comes at a time when the company is struggling to produce positive same store sales. Walmart produced negative store comps for the previous seven quarters. Along with declining same-store sales, Walmart is facing tougher competition from rival Target and dollar stores.

The focus of "Low prices. Every day. On everything." Involves a fundamental pricing structure. Store level management will intensify competition checks ensuring price leadership. Walmart will press suppliers for lower cost in order to pass savings to the customer.

The ad match policy involves easier to follow guidelines. Customers no longer need to produce the advertisement from the competitor. Associates in the stores will endure additional training in order to maximize a successful execution of the policy.

Walmart plans to add an additional 8,500 to the stores. The select items were removed through the "Project Impact" remodel programs. Executives plan on adding favorites of customers including consumables and food items. The marketing strategy of Walmart includes placing "It's Back" flags throughout the store in order to identify the items.

The strategy laid out appears to position Walmart to win back customers who traded down during the Great recession ad have since left for its competitors. As a former Walmart manager, in order to win with the new strategy, the company must recognize external factors. Gas prices determine the amount of money a customer spends on a shopping trip. The national average rose close to $1 in the last three months, as of April 2011.

Lower income families who purchase commodities on a strict budget will need an incentive to shop at Walmart. An additional concern is raising cost of goods. Food prices have spiked more than 6 percent in the recent months. Families tend to forgo discretionary spending when the price of gas and food become unaffordable.

In order to win the customer, Walmart must focus heavily on "Low prices. Every day. On everything."

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