Wal-Mart to launch price-focused ad blitz
The AP reports Wal-Mart, stung by a lackluster start to the holiday shopping season, said Thursday it is launching a new advertising campaign to remind its customers of its low prices. The world's largest retailer is starting the price-focused ad blitz Friday in newspapers, television and radio, said spokeswoman Mona Williams, and feature two dozen key items, mainly toys and electronics, on which the company is cutting prices. "That's what people are buying," she said.
Wal-Mart reported growth of a mere 0.7% for November in stores open at least a year and said its day after Thanksgiving sales were not up to expectation.
"We have great prices, and we are really beefing up our communications to make sure that we get that word out," Williams said.
On 12/2, the company advised that its same-store sales growth would be between 1% and 3% for December, but it left unchanged its fourth-quarter guidance of 2% to 4% growth. Same-store sales measures sales at stores open at least a year are considered the best measure of a retailer's health.
Williams would not say how much the company is spending on the new advertising. She said Wal-Mart is financing the ad buys from its existing advertising budget.
"This is money that is already in the budget, but for more generic holiday advertising ... showing the store experience," Williams said. "We have now diverted that money for item pricing advertising."
The company has customarily shunned ads printed on newspaper pages themselves, but Williams said the company is buying what's known as run-of-press ads to help get the company message out.
She said the company decided that emphasizing individual item prices "is a better way to deliver our price leadership message."
The company will also issue on Dec. 10 an electronic version of its circular, which will have a format that will allow for easy updates.
Williams said the 24 items in the ad being launched Friday will include a 7-inch portable DVD player, LeapPad, and Elmo toys, a Black and Decker jar opener and fleece loungewear sets for men and women. She would not reveal prices Thursday.
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