Wal-Mart Will Go Ballistic With Price Cutting This Christmas

Get ready for Wal-Mart (WMT) to take the nuclear option when it comes to pricing and winning customers this CHristmas.

Here’s Deutsche Bank reporting from the company’s analyst meeting:

Wal-Mart’s low-cost, low-price leadership position will be eminently clear this holiday season. 
The deep discounts on books that were recently announced are likely to be a preview of
what to expect from Wal-Mart during the holiday season, as the company plans to reduce
prices every week leading up to the holiday, saving consumers hundreds of millions of
dollars. We expect the company to be particularly aggressive in ‘Win’ categories (within the
Win Play Show strategy), categories in which Wal-Mart aims to grow market share. The Win
categories appear to be focused more in grocery, consumables, electronics, and health &
beauty, rather than in areas like apparel where Wal-Mart may have less credibility with

Driving strong traffic will be a key goal during this holiday season, as Wal-Mart works to
retain some of the new shoppers acquired during the economic downturn. The ‘new’ normal,
where price occupies greater consumer mindshare, should be very good for Wal-Mart, the
undisputed low-price leader.

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