"Prices for a basket of grocery items at Philadelphia area Walmart stores were 5.8% lower than a year ago, while those in the Atlanta and Southern California markets were 4.9% and 2.7% cheaper, respectively. The price war, coupled with Walmart's renewed focus on refurbishing stores, is hurting the nation's biggest grocers. Operating profits for U.S. supermarkets declined about 5% last year, Moody's Investors Service said."
"Walmart's price cuts are eating into its own profit, forcing it to cut costs and putting pressure on its vendors. But the company is stealing market share. While profit fell 18% in the most recent quarter, Walmart's sales in existing stores, a key metric of retailer health, have risen for 10 consecutive quarters."
Want to stay on top of global trends, best practices and industry news in loyalty marketing?
Subscribe here for the FREE Wise Marketer weekly newsletter