Following the precept of Sir Jack Cohen, the founder of British retail colossus Tesco, Wal-Mart has announced massive price cuts for essential items in more than 100 of its retailing stores across China.
The price cuts are said to be the deepest ones ever made by Wal-Mart since its entry into the country. Most of the goods prices are reduced by up to 20% and a few items have their prices cut by over 40%. These price cuts will last until the end of the Chinese Spring Festival.
The price cuts involve over one hundred categories of goods, including food, clothing and household items. Xu Shufang, vice president of marketing at Wal-Mart China, stated that the price cuts to were to ensure that consumers' quality of life wouldn't be affected and also to stimulate consumption during the economic depression. Xu stated that Wal-Mart will soon launch special offers for other goods such as home appliances apart as well as daily necessities.
Wal-Mart has launched the slogan "offering the lowest market price" to ensure that the price of all the goods involved are the lowest compared with the same goods sold by other retailers. The retailer promises to refund the price difference to consumers if any of its prices are higher than those of its competitors.
The "pile it high, sell it cheap" creed is often attributed to Sir Jack Cohen, who built his rival to Wal-Mart on the idea of providing a large amount of goods to consumers at a cheap price.