I have to admit being a bit flummoxed when I received a call from a friend in North Carolina telling me that Walmart was running ads comparing its prices to Harris Teeter in the Tar Heel State. Hearing the news, my first thought was whether there was anyone in North Carolina who doesn't already know that Walmart has lower prices day-in and day-out on comparable items than its upscale grocery competitor.
So, it turns out that Walmart is planning to run similar ads in markets around the country in an attempt to pick off customers from competitive chains. The campaign, which is getting its start in the Charlotte market, includes television, radio and online messaging.
Tara Raddohl, a spokesperson at Walmart, told WFAE that the company chose to start in Charlotte, "Because we think it's a market where some customers would be surprised to learn how much they can save by shopping at Walmart compared to other chains in that area."
Ms. Raddohl, told the The Charlotte Observer, that the campaign was tactical in nature. "We do have some intent to utilize the same campaign in some local markets, but not at a national level."
For its part, Harris Teeter doesn't seem as though it intends to take Walmart's bait and engage in a back-and-forth with its much larger competitor.
Jared Hensen, a former Walmart marketing exec and current UNC Charlotte marketing professor, told WFAE that Harris Teeter needs to "keep focusing on the quality they're offering. The customer service, the cleanliness of its stores, the relationships in the community."
According to the Observer, Walmart (including Sam's Clubs) currently is the grocery share leader in Charlotte with a 26.2 percent of the market, followed by Harris Teeter at 22 percent and Food Lion with 19.2 percent.