Wal-Mart Stores is back to heavy price promotion to combat its slow start in holiday sales.
Wal-Mart has begun a price-cut blitz with heavy ad support, an about-face from its earlier strategy to eschew its usual discounting. The chain usually runs heavy discounts the day after Thanksgiving; it didn’t this year, and that contributed to flat November sales: Total same-store sales were up only 0.7%, and same-store Wal-Mart sales (not including Sam’s Club) were up only 0.3%, per Wal-Mart. Total sales were $23.5 billion for the month.
Wal-Mart cuts prices by as much as 33% on 24 items, primarily electronics and toys, per news reports. Newspaper ads broke over the weekend; TV will carry more price-oriented spots and fewer image ads.
Wal-Mart also has taken its December circular online so it can change prices quickly if necessary.
Meanwhile, Wal-Mart’s vice chairman Tom Coughlin will retire on Jan. 24, 2005 after 25 years with the Bentonville, AR-based retailer.
His responsibilities will be divided among several Wal-Mart execs: Mike Duke, president-CEO of Wal-Mart Stores USA, will supervise the Logistics division and the Wal-Mart Stores Finance and Compliance office; John Menzer, president-CEO of Wal-Mart International, will oversee the Global Procurement division (including the U.S.); Executive VP-Legal and Corporate Affairs Tom Hyde picks up the Real Estate and Store Planning division; Executive VP-Finance and CFO Tom Schoewe picks up Walmart.com; and Lawrence Jackson, Wal-Mart’s new executive VP-People, takes over the new Diversity Office. All report to CEO Lee Scott.
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