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WALMART RAISING FOOD PRICES FASTER THAN COMPETITORS


Remember when Walmart used to market itself with the catchphrase “Always Low Prices”?
Well, the retailer didn’t just drop the phrase back in 2007. They have actually gone in the opposite direction and have been consistently raising their prices faster than all of their competitors, reports Business Insider .
JP Morgan’s Ken Goldman  looked over Nielsen data on food prices and found the following: “… for every 12-week period since May 14, 2011, Walmart has been raising food prices faster than its competitors.”
Goldman gives the details:
We recently looked at a basket of prices among commonly-bought food items, including bread, milk and coffee, provided by The Nielsen Company . We found that food prices are rising faster in Walmart than in most other channels. In the 12-week period ending 10/29/11, the basket sold in Food, Drug and Mass Merchandising channels including Walmart (FDM+) rose by 8.9%year-on-year. This same basket rose by only 8.6% Y/Y in these same channels excluding Walmart (FDMx). This is not a new trend; according to our data, in every 12-week period since 5/14/11, year-on- year FDM+ pricing has outpaced FDMx pricing.
To put it plainly: “Walmart’s prices have been outpacing those of competitors in most major categories.”
See for yourself (the areas shaded in green represent prices that are growing faster in Walmart):
thank you Steve

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