Anglo-American large retailer starts price war

The economic recession, which has not seen much improvement, has severely reduced the disposable income of British and American families. This makes consumers compare and choose the best price at the same time as they are when shopping. In order to compete for customers, large retailers in the United States and the United States began a price war in the just-concluded Halloween shopping season and the Christmas shopping season that began immediately.

In the United States, Staples, the nation’s largest office supply chain, and BedBath & Beyond, a household products retailer, announced that they will base on-site pricing based on the lowest prices on Amazon and other large shopping sites. Sears, a large American department store, even claimed that it would be 10% lower than its opponent’s lowest price. The retail giant Wal-Mart also joined the war. One of its advertisements announced that if consumers found something cheaper than theirs elsewhere, they would give gift certificates. In fact, Wal-Mart had already chosen to return to its original "everyday low price" strategy last year. In the face of the current situation, this strategy is clearly insufficient to attract consumers. To this end, it officially launched the "Christmas price promise." The specific content is: If consumers shop at Wal-Mart between November 1 and December 25 and find the same cheaper product elsewhere, they will receive a coupon equivalent to the difference amount. Although this offer does not include online prices and certain categories of merchandise, its attractiveness is that it can be several weeks apart between what the consumer buys and the cheaper search, and the tactics include Some large commodities.

In the UK, Tesco, the largest supermarket, fired a price war that was reportedly as high as 500 million pounds, and lowered the price of at least 3,000 items including milk, bread, fruits and vegetables. Tesco, the president of Tesco UK, said that “the purpose of price reduction is to reduce sales promotion and focus on the clear and reliable savings that every consumer can benefit from.” Tesco’s price attack in the UK has already attracted the attention of competitors in the industry. : Asda, a British supermarket chain under Wal-Mart, announced that it guarantees 10% cheaper than its competitors; Sainsburys and Morrisons, the famous British supermarkets, also cut their prices. According to Cobb, Sainsburys Group’s Commercial Director, the company’s price and offensive potential is a “retail buzz” and a “dream message” to the “thirsty shopper”.

The reason why the major retailers in the United Kingdom and the United States have resolutely waged a price war is precisely due to the new trends of consumers in the continuous recession. Gu Bo said without hesitation: “We have been listening to consumer feedback. They told us that tightening the budget means that they have to shop around to get the best deal.” Citigroup Investment Research and Analysis Institute recently to 1,000 US Consumer surveys also showed that 78% of consumers said they would be more susceptible to price cuts than they were a year ago. Even in the economic crisis of 2008, only 68% of people did this.