Inflation is pushing up the cost of everything from soda to diapers, but Walmart has announced that it will be placing some of its inventory on sale. On a Tuesday earnings call, Walmart U.S. CEO John Furner said the chain had around 30% more discounts in stores in the first quarter than the same time a year earlier. He mentioned that the company intends to continue dangling offers and widening price disparities in order to differentiate itself from rivals.
He said, “Over the last 12 months, we saw our price gaps improve versus the market, and our merchants are working hard to ensure that that will continue.” The retail behemoth is known for its slogan and commitment to “Everyday Low Prices.” It advertises discounts — known as rollbacks — on signs with large numbers to grab shoppers’ attention and tout how much they will save.
Walmart and other grocers, on the other hand, effectively halted sales in the early months of the pandemic as they struggled to maintain inventory on shelves. Many retailers limited sales of common products such as toilet paper and ground beef, rather than pricing stock to allow consumers to buy multiples.
Some retailers have reduced orders for products that were passed over, such as clothing, resulting in fewer items ending up on the clearance rack. Consumer packaged goods firms such as Coca-Cola and Procter & Gamble have recently raised prices in response to the product costs, posing a new challenge for retailers.
Walmart, on the other hand, has said it would keep the line. Frequent sales reflect a return to normalcy for the store. When more Americans purchase new clothing, teeth-whitening kits, and other items to get back into the country, it is doubling down on one of its biggest competitive advantages.