Walmart Canada says it has lowered prices for hundreds of items, but a retail analyst is warning consumers to do their homework.
Bruce Winder said consumers should do their research and compare the deals with other items, because the retailer may be creating the perception of having the lowest price everywhere.
“When you lower a basket of items, it … is used to try to convince the consumer that everything else in the store is cheap or competitive, and it’s not always the case,” Winder said in a video interview with CTVNews.ca in Toronto on Monday.
He recommends people check out weekly flyers, retailers’ apps and other stores to see which ones have the best sale or price for certain items.
“My recommendation for any shopper is just try to compare more than just the key items that they’ve lowered,” Winder added.
“Look at other items, too, to make sure that you’re shopping in a competitive environment.”
Winder says the trade dispute and buy Canadian movement may be factors behind Walmart Canada’s move.
“There’s a lot of companies in Canada who are trying to sharpen their pencil from a price perspective, because they realize Canadians are hurting,” Winder said. “Walmart might be hurting a little more than normal because of the pro-Canadian movement. I think a lot of Canadians have invested their shopping dollars in Canadian companies.”
Canadians ‘more financially stretched’
The company announced Monday that since February, it has dropped the price on hundreds of major staple items to help consumers save money. The products include “some fresh fruits and vegetables, bathroom tissue, water, cheese, ground beef and shampoo.” Walmart Canada said it will also keep a “consistent stock” of these items.
“At a time when Canadians are feeling more financially stretched than ever, we’ve lowered the price of hundreds of key items across our stores and website,” Venessa Yates, president and CEO of Walmart Canada, said in a press release. “We want Canadians to know we’re working hard to help them save, especially at a time when many are struggling to make ends meet.”
The company said more than 8,000 new rollbacks, which lower prices further, have been offered since early June in apparel, electronics, health and wellness, and other items.
Customers will see thousands of “rollback” offers in-store and on Walmart.ca each week, added Sam Wankowski, the retail giant’s chief merchandising officer.
CTVNews.ca reached out to Walmart Canada for comment on how much prices will drop for some products. This story will be updated with the company’s response.
Will other grocers be affected?
Sylvain Charlebois, a food distribution professor at Dalhousie University in Halifax, expects Walmart’s move will influence other grocers.
“I think overall it’s good news and I wouldn’t be surprised if other grocers start to follow Walmart’s path and strategy because they need to remain competitive,” Charlebois, director of Dalhousie’s Agri-Food Analytics Lab, said in a video interview with CTVNews.ca on Monday.
On the flip side, he noted that Loblaw has done the opposite by announcing in May that it had raised prices on some “tariff-affected products.” However, Loblaw said on its website it was “working hard to keep prices as low as possible.”
It noted it was working closely with the federal government to try to exempt key items, working with suppliers and trying to source alternative products outside the U.S. that are comparable in quality and price.
Loblaw said products directly affected by tariffs, or directly imported from the U.S., will have the “T” symbol on the shelf and online, indicating the price has risen by up to 25 per cent.
