Although the recession hit hard four years ago, the effects
are still with us. Habits that shoppers developed in 2008 including
extreme couponing and buying private label not only still exist today but also
are considered to be permanent changes for many shoppers. Retailers see this
and acknowledge that even though the worst is over, there is still a price
battle to be fought in order to attract and retain shoppers.
Recently, Walmart launched their "Low Price Guarantee" campaign, which pins their prices
directly against competitors' to (re)prove their "Everyday Low Prices." In
addition to shopper testimonial TV commercials, Walmart is leveraging their
website and social media to invite more shoppers to participate and spread the
word. Their online "Walmart
Receipt Comparison Tool" invites shoppers to...
take a photo of a
recent receipt from another retailer, upload it to the receipt comparison tool,
and wait 2-4 days for the results to be sent to
their email address. Shoppers are then encouraged to share the results via
social media and email. Walgreens is also highlighting savings with their new
rewards card
, Balance
Rewards. The program offers cardholders special savings when shopping at
Walgreens as well as the ability to earn and redeem points on items purchased
at Walgreens. And while rewards programs are nothing new to retail, they offer
shoppers on-going savings and value that often enhance shopper loyalty.
Both Walmart and Walgreens are enhancing and
upgrading their value proposition, with a strong focus on price. This will likely
make price more top of mind for shoppers and lead them to weigh their options when it comes down to where they shop. Much
like credit card rewards programs—shoppers begin to seek out and be loyal to
those that give them the best value and perks. How do you think other retailers
will react to these new programs and shoppers’ more permanent focus on price
and savings?
Photo Source: Walmart.com
