Big British And American Retailers Start Price Wars

Persistent improvement Economics The recession has severely reduced the disposable income of British and American families. This makes consumers more cautious in comparison with shopping and choosing the best price. In the just concluded Halloween shopping season and the start of the Christmas shopping season, big retailers in the UK and the US have started the price war.

In the US, Staples, the largest office supplies chain in the United States and BedBath&Beyond, a household product retailer, announced that they would make price fixing based on the lowest price of Amazon and other large shopping websites. Large American Department store The company Sears also claims to be 10% lower than its lowest price. WAL-MART, a retail giant, joined the war. One of its advertisements announced that if consumers find something cheaper than elsewhere, they will give coupons. In fact, WAL-MART has chosen to go back to its original strategy of "everyday low price" last year. Faced with the current situation, this strategy is obviously not enough to attract consumers. To this end, it officially launched the "Christmas price pledge". The specific content is: if the consumer purchases the same product in WAL-MART during the 25 months of November 1st ~12 and finds cheaper products elsewhere, it will get a coupon equivalent to the difference price. Although the discount does not include online prices and certain categories of goods, its attraction is that consumers can buy things and search for cheaper prices for several weeks, and the preferential policies also include some large commodities.

In Britain, Tesco, the largest supermarket, has launched a price war, which allegedly amounted to 500 million pounds, and lowered the price of at least 3000 products including milk, bread, fruit and vegetables. Brasher, chief executive of Tesco, said: "the purpose of price reduction is to reduce sales promotion and focus on savings that are clear and reliable, and every consumer can benefit from it." The price attack in Tesco has sparked the industry's competitors: WAL-MART's Asda, a British supermarket chain, announced that it was 10% cheaper than its competitors, and that the famous British supermarkets, Sainsburys and Morrisons, also cut prices. Sainsburys group business director, Robert Cooper, said the company's price following offensive is a "retail revolution", and it is a fantastic news for the "struggling shoppers".

The reason why the big British and American retailers are staunch in price war is the new trend of consumers in the continuing recession. "We have been listening to consumer feedback," Cooper said. They told us that tight budgets mean that they have to buy goods better than three to get the best deal. " Citigroup's investment research and Analysis Agency's recent survey of 1000 US consumers also shows that 78% Consumer They will be more vulnerable to price cuts than they were a year ago. Even in the economic crisis of 2008, there were only 68% people doing so.