Whoever is writing for Right Angle Blog now is excited by Walmart’s recent announcement that it “will chop prices between 10 to 30 percent this week on groceries, electronics and other home-related products in an effort to keep its cash-strapped consumers excited about shopping.”
According to RAB, Walmart’s price-lowering strategy is “Doing More Than Any Economic Stimulus Package.”
In part, they are right. This strategy is doing “more” but, unfortunately, it’s more harm.
Walmart can call it price-chopping and say it’s intended to help consumers get more for their dollars but at the end of the day their motives are pretty selfish and this price-chopping may actually signal even more rough times ahead for our economy- especially if other retailers, faced with diminishing sales, follow Walmart’s lead.
That’s because a general lowering of prices based on a collapse in demand is called DEFLATION- and deflation is a pretty damn good sign we are in a recession and possibly headed for a long term economic depression.
Is anyone still excited about 15% off TVs and apples now?