Josh Elledge - Chief Executive Angel
Is Walmart ad matching on death row?
Between the good old-fashioned paper ads and the ability to look at store ads online, shoppers are still using simple comparisons to save money. In a February 2016 survey, Market Force found that 79% of shoppers plan their purchases based on the deals being offered, and 61% of shoppers compare prices between grocers.
So that would lead you to believe that grocers would up their sale ad game, right? Well, most are, but two big name store chains are going with new business models instead; in hopes that the simple promise of lower prices will be enough to get shoppers in the doors.
The two names won't surprise seasoned sale ad flippers: they are Whole Foods and Walmart. Why aren't those names a surprise? Because neither store has ever been big in the sale ad war in the first place.
Whole Foods has traditionally released a very small sale ad each week. And Walmart has never really put out grocery sale ads at all. Rather, what Walmart releases is more of a flyer that features items at regular price, with a few “roll back” items tossed in here and there for good measure.
Changes for coming to the Whole Foods brand…
Whole Foods is rolling out a new store chain, called 365 by Whole Foods Market. This new store concept is designed with lower prices, and even offers coupons and loyalty rewards. The plan is to have a chain of stores that will compete for the business of comparison and coupon shoppers – while still maintaining the quality Whole Foods is known for.
They just opened the doors to their flagship store in the Silver Lake area of Los Angeles, CA, but the concept isn't difficult to imagine. By simply not carrying as many high-priced and specialty items, and focusing more on Whole Foods' store brand products, they have the opportunity to attract more shoppers. And that may be all it takes. Because it's really the “high prices” perception they are trying to change, while riding the still rising demand for organic and local foods. As a consumer advocate who has watched those demands for years, I predict that the new chain could be quite successful. Especially since they are pairing lower prices with coupons and incentives. You can check out 365 by Whole Foods online at 365bywfm.com.
Changes coming to Walmart…
For years, Walmart has simply replied on slick marketing to claim they “always have the lowest price” – and now they're attempting to reinforce that concept. Although it has only affected about 500 stores so far, they have announced they are eliminating price matching. And they're not announcing which stores. That's right. No more price matching at Walmart – but you won't know until you arrive at the store. Instead, they are claiming that they plan to simply reduce prices throughout their stores – in an attempt to further convince shoppers they “always have the lowest price”.
As a consumer advocate that has tracked Walmart price matching (ad matching) for a long time, and have encouraged consumers to use it, I see a huge problem with this. Sorry, Walmart, but you simply don't have the lowest prices. Stores that run sales and offer store incentives do – period. And savvy shoppers who were once using the price matching and their coupons to shop Walmart won't be able to anymore. That's why I predict that this could cause their grocery and consumable goods sales to drop as the ability to price match disappears. Walmart, on the other hand, is banking on convincing enough people that they don't need sales and coupons, in order to offset the mass exodus of ad matchers.
Only time will tell if my predictions are right about the future of Whole Foods and Walmart. In the meantime, I'm going to continue to encourage shoppers to compare sale ads – real sale ads – to save money every week on their groceries. Along with allowing SavingsAngel.com to help you cut your grocery bill, I recommend the Flipp app from Flipp.com. Accessible from home or on the go, the Flipp app allows you to view and compare all your local store ads quickly and easily – so you truly always get the lowest price.
