Always Low Prices?

Don’t hate me cause I’m beautiful (or more efficient) seemed to be Wal-Mart’s old marketing strategy. “Always low prices, always Wal-Mart.” However, with a massive attack, led primarily by unions and small business, Wal-Mart found itself hated for those low prices.

The Wal-Mart debate is heating up as the 2008 elections draw near. A few years ago most people wouldn’t have ever guessed that a mere retail store could cause such a fiasco. So what’s changed over the past couple years?

Wal-Mart was building new stores at a record pace. It was averaging about 300 new stores a year and each new store represents an eminent threat two groups of people: unions and small retail.

Because Wal-Mart sells products at such a low price it puts many small business owners, out of business. The fear of many is that Wal-Mart could grow so big that it could have a monopoly. However other’s disagree claiming Wal-Mart is a retail store. They don’t actually manufacture their own goods, and thus if Wal-Mart ever made an attempt to raise the price of goods above the natural price, or the price of market value, these economists argue that other retail stores would buy goods at market value and sell them at a cheaper price.

However, Wal-Mart is intending to add another argument to the debate. Their next motto will be something more like, “Saving people many, so they can live better lives.” Wal-Mart is arguing that cheap prices are actually good for the economy because lower income families will be able to afford more and have a better quality of life. This argument would be strengthened by Wal-Mart’s recent decision to sell prescription drugs for cheaper, and in doing so forcing Target to lower their prescription drug prices to compete with Wal-Mart.

But will Wal-Mart’s change in advertising be enough to change negative attitudes? I imagine not. What will probably happen is that those who were for Wal-Mart will remain staunch allies and those who are against it will remain staunchly against it. But only time will tell.