Content about Competition

March 15, 2013
Lowe's CEO shares pricing strategy

Lowe’s is competing in the price wars -- especially with Internet retailers -- by using the merchant mind-set of “dead net pricing.”

Lowe’s is competing in the price wars -- especially with Internet retailers -- by using the merchant mind-set of “dead net pricing.” 

Speaking at the UBS Global Consumer Conference Wednesday, Lowe’s CEO Robert Niblock described his company’s improvements in the price wars.

September 28, 2012
Spoiler alert: Walmart’s prices lowest to varying degrees

Pricing studies conducted this week by Wall Street analysts yielded familiar results.

Pricing studies conducted this week by Wall Street analysts yielded familiar results.

Deutsche Bank analyst Charles Grom and Citigroup analyst Deb Weinswig issued reports this week comparing Walmart’s prices to dollar stores and conventional supermarkets and Target.

June 22, 2012
High income or low, consumers still concerned about price

A new report from Acosta Sales and Marketing reveals that consumers at all income levels consider price before making a purchase, showing that economic concerns affect everyone.

JACKSONVILLE, Fla. — A new report from Acosta Sales and Marketing reveals that consumers at all income levels consider price before making a purchase, showing that economic concerns affect everyone.

January 27, 2012
EDLP: It’s not as easy as Walmart makes it looks

JCPenney got a lot of love this week from investors and the media after the company’s senior leadership unveiled a simplified pricing and promotional strategy that sounded an awful lot like another well-known retailer’s success formula.

JCPenney got a lot of love this week from investors and the media after the company’s senior leadership unveiled a simplified pricing and promotional strategy that sounded an awful lot like another well-known retailer’s success formula.

January 25, 2012
"Fresh Air" era begins at JCP

The transformation of JCPenney into America’ favorite store will begin with dramatically simplified pricing strategy and promotional cadence supplemented by an improved product presentation that will allow the 110-year-old company to regain its personality with a new generation of shoppers, according to CEO Ron Johnson.

NEW YORK — The transformation of JCPenney into America’ favorite store will begin with dramatically simplified pricing strategy and promotional cadence supplemented by an improved product presentation that will allow the 110-year-old company to regain its personality with a new generation of shoppers, according to CEO Ron Johnson.

December 2, 2011
Walmart leads pricing survey with Target on its tail

All retailers are taking price increases where they can these days, especially in food, but the pace of increases at Walmart has slowed, and its price gap relative to most competitors has widened, according to the most recent pricing survey conducted by Credit Suisse.

All retailers are taking price increases where they can these days, especially in food, but the pace of increases at Walmart has slowed, and its price gap relative to most competitors has widened, according to the most recent pricing survey conducted by Credit Suisse.

October 14, 2011
More tough talk on pricing

Walmart has pegged its success in the United States on widening the price gap with competitors to fulfill its everyday low price value proposition, and again this week senior leaders in the stores division vowed to win on price.

Walmart has pegged its success in the United States on widening the price gap with competitors to fulfill its everyday low price value proposition, and again this week senior leaders in the stores division vowed to win on price.

June 20, 2011
Another report of rational pricing

Food inflation is top of mind with retailers these days and more specifically the ability to preserve margins by raising prices to offset the higher prices suppliers are charging. This ability to pass through price increases is dominating discussions in a food universe where it has become common to hear retailers use the word “rational” when describing the pricing climate.

Food inflation is top of mind with retailers these days and more specifically the ability to preserve margins by raising prices to offset the higher prices suppliers are charging. This ability to pass through price increases is dominating discussions in a food universe where it has become common to hear retailers use the word “rational” when describing the pricing climate.

March 31, 2011
Another insult for EDLP

No one disputes the philosophy that every day low prices enabled Walmart to achieve dramatic growth, but pricing studies continue to reveal a marketplace where price separation relative to competitors has become difficult to achieve.

No one disputes the philosophy that every day low prices enabled Walmart to achieve dramatic growth, but pricing studies continue to reveal a marketplace where price separation relative to competitors has become difficult to achieve.

March 21, 2011
How to win with shoppers in a price-transparent world

Consumers today are smarter and savvier than ever. Over the past decade, the continually growing use of the Internet has made it easier and faster to comparison shop. During the “Great Recession,” shoppers learned to lean even more heavily on the Web to do research and find good deals. Now, as the economy recovers, these sharp consumers are not about to go back to their old ways. In addition, future technology advances will only make it easier for consumers to comparison shop. So what’s a retailer to do?

Consumers today are smarter and savvier than ever. Over the past decade, the continually growing use of the Internet has made it easier and faster to comparison shop. During the “Great Recession,” shoppers learned to lean even more heavily on the Web to do research and find good deals. Now, as the economy recovers, these sharp consumers are not about to go back to their old ways. In addition, future technology advances will only make it easier for consumers to comparison shop. So what’s a retailer to do?

February 1, 2011
What will you do with your 5%?

Another week and another full page ad in Target’s circular touting the REDcard Rewards program launched last fall. Nothing unusual about that right? The 5% savings program has been promoted heavily since is arrival last October to the point where it is impossible to look anywhere in a store and not seen 5% Rewards signs.

What’s different about the most recent ad is it enters some new territory in that Target is touting not only that its prices are low, but that they are in fact the lowest because shoppers are able to take advantage of a low-price promise and then save an additional 5%. The concept and messaging is similar to the situation in the home channel where Home Depot and Lowe’s have nearly identical low-price guarantees. However, they go a step further and promise to beat the competitor’s price by 10%, offering shoppers considerable savings on large-ticket purchases.

Another week and another full page ad in Target’s circular touting the REDcard Rewards program launched last fall. Nothing unusual about that right? The 5% savings program has been promoted heavily since its arrival last October to the point where it is impossible to look anywhere in a store and not seen 5% Rewards signs.

January 24, 2011
Target offering unbeatable combination, so far

Target has never claimed to have the lowest prices, but it might want to rethink that strategy now that it has the benefit of its REDcard loyalty program.

Target has never claimed to have the lowest prices, but it might want to rethink that strategy now that it has the benefit of its REDcard loyalty program.

October 3, 2010
Whirlpool fined $92 million in price-fixing case

Whirlpool unit Embraco North America, based in Delaware, along with Panasonic, a Japanese Corp., admitted...