“EDLP” is one of Walmart’s favourite acronyms.It stands for “every day low prices” — promising consumers a low price without having to watch for sales and promos — and it’s a key part of its pricing and marketing strategies in the U.S.
Walmart’s international division president and CEO Doug McMillon is confident that it will work everywhere. So confident, in fact, that he’s betting his job on it, reports Mike Troy at Retailing Today.
“I will bet my career on [EDLP] anywhere,” McMillon said. “It builds trust with the customer, which is our number one asset, and it takes cost out of the system.”
That’s important because the EDLP strategy hasn’t been too consistent for Walmart abroad and international growth (especially in Brazil and China) is one of Walmart’s main priorities going forward, as cited by CFO Charles Holley.
What is going to take to make EDLP work overseas? It goes beyond operational execution and getting products on shelves when they’re needed.
Consumers must accept the model. In some countries like China, Brazil, India and South Africa, shoppers are accustomed to promos. They want to head out and find deals.
It’s a big reason why Walmart has taken a while to roll out EDLP in many of its international markets, but McMillon’s stance on the issue is clear. He’s going all-in with this strategy, and we’ll just have to wait and see if it works.
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