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In the horrible economy of the past few years, some consumers have avoided Walmart in search of cheaper alternatives. Dollar stores, which had cheaper basic supplies like toilet paper and medicine, began to present big competition, the New York Times reported in 2010.
But the world’s largest retailer figured out how to get people to come to their stores instead, the NYT reported today.
Here’s the smart tactic Walmart uses to get people to come to them:
Now, Wal-Mart has added back merchandise to the shelves, including small sizes to make end-of-the-month purchases affordable as paychecks run out, said William S. Simon, chief executive of Walmart U.S., in prepared remarks.
In other words, Walmart stocks single rolls of toilet paper and individual bars of soap toward the end of the month so people will shop there instead of the dollar store.
They also have smaller servings of food, medicine and toiletries to get people through the rest of the month. Many stores have thousands of items under $1, often grouped together, according to the Times.
It’s working. Despite the bad economy, the average ticket price, or the number each person spent, is up, the company reported today. Total sales are up too.
Dollar stores are striking back and trying to offer more food like Walmart does.
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