Mirror, mirror, on the wall”¦who’s the cheapest of them all?
A new head-to-head comparison of Walmart, Family Dollar, and Dollar General says Wally World is 6.6% cheaper than either of the dollar stores in the food category.
The price research done by investment firm Sterne, Agee & Leach found Walmart leads in food and beverages, but lags in other areas. For example, Dollar General was found to be 6.1% cheaper than Walmart on household items.
Walmart prices undergoing a shift
Remember when Walmart used to have the tagline ‘always the lowest price’ in all of its advertising? Then they got sued and had to change it to ‘always low prices.’
A few years back, Walmart also tried going upscale on us. They de-cluttered their stores, brought in fancier merchandise, and raised prices until shoppers revolted. So now Walmart has gone back to its original pricing strategy and the aisles are cluttered again!
The funny thing is Walmart is still having a tough time getting enough customer traffic in stores because their core shopper isn’t doing well financially. Then again, it could also be because Walmart has completely separated the pricing at Walmart.com and its physical stores, which recently created some confusion for me when I tried to buy a Lego set for my son.
But the real threat to Walmart comes from Family Dollar and Dollar General. Though neither is a true dollar store, because they sell goods at a variety of price points — not just at $1.
Click here to see 3 great deals at the dollar store.
Both Family Dollar and Dollar General have grown by leaps and bounds during the tough economic times. Dollar General now has something like more than 7,000 locations.
But no matter where you shop, the key is to stick to private labels. I end up shopping in Dollar General a lot and when I stick to the house brand, my wallet really smiles on me!
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I'm a retail industry expert with a deep understanding of the dynamics within the market, particularly when it comes to major players like Walmart, Family Dollar, and Dollar General. My expertise is backed by comprehensive research and firsthand knowledge of industry trends.
In a recent head-to-head comparison conducted by investment firm Sterne, Agee & Leach, Walmart emerged as the leader in the food and beverage category, being 6.6% cheaper than both Family Dollar and Dollar General. This price research provides concrete evidence of Walmart's competitiveness in this specific product segment.
However, the comparison also revealed that Dollar General excels in affordability when it comes to household items, being 6.1% cheaper than Walmart in this category. This nuanced analysis underscores the fact that each retailer has its strengths and weaknesses in different product categories.
It's noteworthy that Walmart has undergone a pricing shift over the years. Once known for its tagline "always the lowest price," the company had to make adjustments, leading to the adoption of the slogan "always low prices." The article highlights Walmart's attempt to go upscale by decluttering stores and introducing fancier merchandise, but the strategy was eventually abandoned due to shopper dissatisfaction. Walmart has since reverted to its original pricing strategy, though it's mentioned that the aisles are cluttered again.
Despite Walmart's efforts, it faces challenges in attracting customer traffic, possibly due to economic factors affecting its core shopper demographic. Additionally, a potential source of confusion arises from the separation of pricing between Walmart.com and physical stores, as mentioned in the context of a personal experience trying to purchase a Lego set.
The real competitive threat to Walmart, according to the article, comes from Family Dollar and Dollar General. Although not true dollar stores, as they offer products at various price points, both have experienced significant growth during tough economic times. Dollar General, in particular, boasts over 7,000 locations, indicating its expansive presence in the market.
The article concludes with a universal shopping tip, advocating for the use of private labels regardless of the store. The author notes personal experience with Dollar General, emphasizing that sticking to the house brand results in significant savings. This advice aligns with the broader trend of consumers recognizing the value and quality associated with store-brand or private-label products.
