BENTONVILLE, AR - Walmart has made a major change to its operating structure in upwards of 300 U.S. stores, announcing the elimination of its popular price-match program.
"Firms implement price-matching to cultivate customer loyalty and reinforce the perception of price competitiveness," Kenneth Perkins, Equity Analyst at Morningstar, commented in an email, according to NBC News. Perkins went on to suggest that price-matching, in fact, did little to actually alter store volumes and/or price perception in the markets now losing the program.
As a retailer whose reputation is associated with savings, with the slogan “Save more, live better,” speculations have stirred that the move is part of a broader plan to implement a more solidified, yet still low, pricing structure for consumers.
While Walmart did not respond to multiple sources’ request for comment, CEO Doug McMillon stated in the retailer’s quarterly conference call this past May, "Better expense management in the quarter gave us increased confidence to initiate our next phase of U.S. price investment earlier than planned. Over time we intend to lower prices further in a deliberate strategic way."
Following the announcement, Walmart cut the price-matching program from about 500 stores in June, according to the news source, and while this could be part of a broader plan for more consistent low prices, Perkins added it could also be in reaction to lack of competition in the markets seeing the cut. "It's also possible that the competitive environment in those markets has decreased," his email stated.
Amidst several moves for growth, including the $3.3 billion acquisition of Jet.com and a number of possible new facilities, AndNowUKnow will continue report on structural growth and changes for Walmart and other retailers in the market.
