Walmart Tries to Get Back On Message

It wasn't long ago that Walmart was trying to broaden its customer base, hoping to attract a slightly more upscale crowd. Now, mired in a sales slump that's lasted seven consecutive quarters, it's wishing it could just get its old customers back.

It's hoping to accomplish that by an advertising and merchandising campaign that takes it back to its “core pricing message” – the time-tested “Every Day Low Prices” slogan that saw it grow from a backwoods chain to Earth's biggest retailer.

An advertising campaign breaking next month will highlight the chain's decades-old everyday low pricing strategy and will also highlight its policy of matching competitors' advertised prices, a policy it's always had but hasn't talked about much.

Spiffed up

In its failed attempt to appeal to a more affluent crowd, Walmart abandoned its cluttered look and its policy of always having the lowest prices on the most basic merchandise. Instead, it spiffed up stores, starting talking about sustainability and organic food and offered discounts on some items while raising prices on others.

The remodeling effort may have been the biggest mistake. The company spent billions of dollars dolling up its stores but, in the process, cut back on its selection.

Now, hoping to return to its roots and win back its $30,000 to $70,000-per-year customer base, Walmart is once again stacking merchandise up to the ceiling and piling up boxes in the aisles, just like the good old days.

Will it work?

Some retail analysts note that times have changed. For one thing, the biggest demographic group in the country – the boomers – have aged. They're beyond their child-rearing years and aren't making as many big stock-up trips to the local Walmart.

Younger consumers, meanwhile, shop differently. Instead of making one or two big shopping trips a month, they tend to order online from the likes of Amazon.com and Drugstore.com – a pattern reinforced by the long hours and long commutes many families face today, not to mention the allure of sales-tax-free shopping that online purchasers enjoy in most states.

Could it be that the supercenter concept has run its course? That's the theory of Leon Nicholas, quoted by trade magazine Advertising Age.

Nor is Nicholas convinced that Walmart's strategy of rolling out small-format stores will be much help. The dollar chains are adding at least 1,000 stores this year while Walmart is adding only a few hundred over the next several years.