Why Wal*Mart Had a Merry Christmas
Why did Wal*Mart have such a strong holiday season? According to the New York Times, its strong performance can be attributed to a unique strategy that included early-morning discounts before and during the holiday season.
The Arkansas-based retail giant devised the strategy, never before attempted by any major retailer, in order to attract shoppers turned off by crowds on Black Friday and other times during the season. Shoppers showed up early in a big way, looking for discounts on electronics and other products. As a result, the company posted gains of 2.7 percent on in-store sales over the same period the year before, during a season in which the majority of its retail rivals did poorly. The figures include those of Sam’s Club.
The strategy represents a return to Wal*Mart’s traditional strategy of low prices above all else, after the company made a brief foray into attracting a more high-end demographic.