Wal-Mart capitalizes on the bad economy
Terra Ciolfe
Issue date: 12/2/08 Section: News
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As the holiday season is fast approaching, everyone is starting to penny pinch in order to buy for their loved ones (especially students).
Enduring these economic times, everyone - not just students - are a little strapped for cash. So this holiday season is the year of the big box stores.
According to a recent survey, two thirds of Canadians are planning to spend their hard earned-holiday money at Wal-Mart, 51 per cent are going to Zellers and 40 per cent to Canadian Tire.
"This year the consumer mood is changing and as a result retailers are facing fiercer competition for a smaller pool of spending dollars," said Robert Daniel, Managing Director of Maritz Research Canada in a press release. "With a reduced budget, shoppers will be less tolerant and retailers are going to have to do more to make sure customers feel they have a good experience."
When speaking about big box stores, the company that predominately comes to mind is Wal-Mart. They have already prepared for this competition by reducing "thousands of prices on items like toys, electronics, housewares and small appliances, to help Canadians celebrate the holidays", as stated in a press release from the corporation.
Wal-Mart plans on rolling back hundreds of prices every week until Christmas.
"Customers are feeling financially pinched and we're responding with record-low pricing so that customers can have what they need and want this holiday season," said Sylvain Prud'homme, Wal-Mart Canada's senior vice president of merchandising in a press release. "Our sales data shows that customers are still intent on celebrating Christmas and we're ready to provide savings that matter around the home and under the tree."
Hearing this news brings attention to the prevalence of big box stores in Canada which is concerning for a lot of people and brings a lot of anti-corporate sentiment.
"I think [people] flock [to big box stores] because of the prices. I think the chain of events is that people are losing hours, losing pay, or losing jobs and their discretionary money becomes smaller and smaller," said Jonah Butovsky, professor and Director of Labour studies.
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