Post | 11/06/2008 8:55 am
'Twas 2 Months Before Christmas, and Wal-Mart Keeps Cutting Prices
Looking for $10 Barbie dolls and Hot Wheels sets this holiday season? How about packs of Christmas tree ornaments for five dollars?
If so, get ready for Wal-Mart’s “Operation Main Street.”
The big-box store that reaps windfalls in economic downturns when people are trying to save money will be introducing new rounds of price cuts every week until Christmas.
As part of the operation, Wal-Mart will be slashing prices on thousands of items that it says are "vital" to the holiday season, like food and toys. This is on top of price cuts for toys Wal-Mart implemented in October.
"It’s very much along those same lines, only it takes the intensity up massively," Stephen Quinn, Wal-Mart’s chief marketing officer, told Reuters.
No doubt this holiday season consumers can use the extra savings, with high food and fuel prices (albeit gas is cheaper than it was a few months ago), falling home values, tight credit and high unemployment.
It surveyed moms to find out how they are planning to shop over the next eight weeks.
"We know that Mom’s not going to cancel Christmas,” Quinn told The New York Times. “We’re committed to cutting the cost of Christmas. It’s what we do.”
So while other department stories weep over their economic woes, cut staff and close stores, Wal-Mart is expected to have a blockbuster holiday season.
"In my mind, there is no doubt that this is Wal-Mart time,” H. Lee Scott Jr., the company’s president and chief executive, said recently at a meeting of analysts and investors in Wal-Mart’s hometown, Bentonville, AR. “This is the kind of environment that [founder] Sam Walton built this company for.”
One Deutsche Bank analyst declared “a Wal-Mart Christmas.”
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