Walmart WMT CEO Doe McMillon spoke on CNBC about the company’s efforts to lower prices. He emphasized the company’s ability to keep prices low for its private label products and that management is encouraging national brands to lower the selling prices of their products as well.
This is a great move. Walmart can use its purchasing power to ensure that companies get lower prices for the products they sell to Walmart. During this critical period, Walmart’s suppliers are also likely to offer discounts to other customers. It’s three weeks before Christmas, but at this moment, stores are looking for excitement.
We’re in the stressful period that happens every year during the holiday season, when sales slow between Thanksgiving and the peak of last-minute shopping. Walmart’s efforts to make national brand products available at discounted prices demonstrate great promotional leadership.
Traditionally, sales slow down after Thanksgiving and Cyber āāMonday. A lot of effort goes into preparing for sales during the holidays, but then there’s a lull. At this time, stores want customers to be able to buy the best products at regular prices. However, many people shopped earlier this year and are still worried about the possibility of a recession. Indeed, these fears of a recession concern everyone, including Federal Reserve Chairman Jerome Powell.
The National Retail Federation predicts merchandise sales will increase 3% to 4% this holiday season, or $957.3 billion to $966.6 billion. There’s a lot of wishful thinking in this number, as other companies like Bain share lower numbers. There is one caveat. The Nation Retail Federation’s forecasts include the entire months of both November and December, as holiday shopping is expected to begin in early November. This period takes into account early shopping activity leading up to and leading up to Thanksgiving.
Around December 18th, most store management teams will be touring their stores, looking for stores that are clearly underperforming, and reducing the value of these debts. Since it wasn’t sold at full price, bargain hunters might buy it due to the price reduction. Retailers made the mistake of buying in bulk, but now customers may enjoy finding sale items they love.
This is the period each retailer prepares for throughout the year. If all goes to plan (or if you make some successful adjustments along the way), your pre-holiday high volume sales will pay off. And if all expense factors are aligned, management can look to the new year and focus on the challenges it brings.
postscript: Retail is an exciting profession, although it can have its stressful moments. Last year’s performance can be a guide to the next year, but smart retailers know that it’s also important to be opportunistic because consumers are unpredictable and economic conditions can change. Masu. It will be interesting to see how this year goes and where retailers stand heading into next year.