While much of the retail industry is hoping that Congress will pass a stimulus package that will get consumers shopping again, Wal-Mart is looking to jumpstart spending with a price rollback of 10 to 30 percent on thousands of items in its stores and on its website.
"We all know economic times are tough so our plan is to help with added savings throughout the year, focusing especially on what people want, when they need it," said John Fleming, chief merchandising officer, Wal-Mart, in a press release. "Shoppers are depending on us to deliver the best price so they can stick to their plans, no matter what the economy throws at us. We won't let them down."
According to the retailer's release, Wal-Mart is focusing its rollback on "unbeatable prices for the big game, fitness needs and home products."
While Wal-Mart may be looking to make life easier on consumers going through a rough economic patch, it is also a well-timed marketing move.
"Super Bowl is a sales driver for Wal-Mart, particularly for consumables and electronics. For Wal-Mart to piggyback off that event is a smart marketing strategy," Michael Niemira, chief retail analyst with International Council of Shopping Centers (ICSC), told CNNMoney.com.
"The extent to which Wal-Mart can use these extra discounts to drive [store] traffic and pick up market share is a good thing," he added.
Melissa O'Brien, a spokesperson for Wal-Mart, said the current price cuts are simply the beginning. "We will have more of these during the busier shopping periods of the year like Valentine's Day and Easter," she said.
Discussion Questions: How effective will Wal-Mart's latest rollback public relations effort be in driving traffic to its stores and grabbing market share in the short and longer term? What will be the response from Wal-Mart's competitors? Can they handle a prolonged price war with Wal-Mart?