October 3, 2013
Walmart vs. Publix in Battling BOGOs
Back in March, RetailWire polled readers on whether Publix was likely to be successful by combating Walmart’s price comparison ads with its own "Walmart doesn’t always have the lowest price" campaign. I have to admit being surprised that 90 percent of respondents thought Publix would have some success taking the price fight directly to its much larger rival.
Among the points made by Publix was that its famous buy one, get one free (BOGO) offers were a means to greater savings. It now seems that Walmart heard Publix, because it is offering to match BOGOs from food and drug competitors.
"We’re always looking for and testing new products and services to meet customers’ needs," Walmart spokesperson Molly Philhours told The Ledger. "Customers told us they want us to match BOGO offers from other retailers. So that’s what we’re doing."
"We will continue to offer quality products at a competitive price and differentiate ourselves by delivering premier customer service,’ Publix spokesperson Brian West told the Tampa Bay Times. "Our customers know that Walmart doesn’t always have the lowest price.’
Discussion Questions
How should Publix respond to Walmart’s offer to match its BOGO offers? Should it abandon its “Walmart doesn’t always have the lowest price” campaign?
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Don’t abandon it and don’t worry about Walmart matching. Walmart will play the “we don’t stock that particular version” or take forever to figure out how to give you the discount, hoping folks give up.
Publix is sitting good right now. With BI-LO/Winn-Dixie getting in over their heads with too many low volume stores, a heated Publix vs Walmart battle could leave them both big winners if there is continued fallout in the south. Food Lion, Albertsons, Sweetbay, and Belle Foods have been brought to their knees and closing stores by the bushel. Winn-Dixie and BI-LO went bankrupt. Harris Teeter went running to Kroger to save them. Piggly Wiggly is quickly disappearing.
Knowing Publix, they will only get stronger by battling Walmart. They always have. Publix is larger and stronger than ever, and they have done so by using Walmart as muscle to force out competitors. Publix should just keep being Publix. Walmart might match their ad like they do others, but I doubt they will do so unless the customer asks them to at the register.
“Walmart Doesn’t Always Have the Lowest Price” is probably not the best ad slogan. To me it sounds like they are saying that for the most part Walmart does have the lowest price. Just not always, which everyone knows anyway. I think any ad Publix does it would be better not to mention Walmart because you only give Walmart more attention.
Publix vs. Walmart. As if they have not been battling for the past several years already. My family is a committed Publix customer and have been since we moved to Florida more years ago than I want to publicize.
There is no comparison between the two if you care about a smiling friendly face willing to help vs an uncaring employee pointing you in a direction without even looking at you. Sometimes low price is not always the answer.
Yes, Publix got that message and has worked to reduce pricing thus drawing customers back. My wife is a good example. Publix pricing vs. Walmart at one time was considerably higher forcing her to shop at Walmart for those certain items despite Publix being her preference.
The competition is good and it appears the battle for BOGO will make it more interesting.
While no supermarket should be cavalier about prices, Publix runs the risk of falling into the trap of competing with Walmart on pricing. Walmart has made it clear with its “smash mouth” pricing initiatives that it will always be the low-price provider. It is even targeting dollar stores on pricing.
Publix should not engage in a price war with Walmart. It is an unwinnable proposition. The market knows about Publix’s BOGO campaign. Instead of escalating the price war, Publix should return to the high ground of products, selection and service that makes it one of the most revered food retailers in the country.
I hate these campaigns. If the best reason to shop with you is that you can sacrifice margin points faster than the other guy you will inevitably lose.
The Publix campaign cedes total control of pricing strategy to Walmart. Really a rookie move.
My vote if I ran Publix? Quit playing their game. Figure out all the things you do that Walmart can’t begin to match and start advertising them.
Publix is not going to win a price war with Walmart. Walmart’s pockets are too deep and its buying power is too strong. Instead, Publix should focus on quality of products and customer service.
That does not mean that they need to abandon the “Walmart doesn’t always have the lowest price.” It has been effective and can continue to be so in the future.
When faced with a tough competitor, look at what makes your company different and emphasize those points. Publix has much more than low prices going for it.
Why battle Walmart on price? Are you kidding? Publix should stress their ‘best ats’ first; great service and higher quality.
Sam Walton said it best: “It’s easy to compete with us, just do what we don’t do.”