Walmart is one of the biggest grocery stores in America. Most Americans who have been victims of the economic recession are likely to breathe a sigh of relief at the announcement by the big grocery store chain that they are cutting down on their prices. The price adjustments affect over 3,800 Walmart stores throughout the country. The store is, on the other hand, putting pressure on most of its grocery suppliers to lower the wholesale process of their products so as to help in achieving this feat. Though this is seen by many to be a daunting task, the feat is achievable if the companies involved stick to their end of the deal.
This move comes at a time when Walmart is trying to get back its reputation of being the leading low cost grocery store, which has been tarnished by the emergence of many dollar stores. With the rising cost of energy, the reduction on the cost of groceries will come as a relief to most consumers who struggle to make ends meet. With people having very little control over the rising fuel prices, Walmart makes it possible to control the cost of living by countering this in a reduction in grocery prices.
For Walmart to remain competitive in the market, while keeping the cost of their products as low as possible, they have to convince their suppliers to absorb some of the cost associated with increased food prices. This is likely to be a tall order for most food suppliers. The suppliers will have the choice of either tightening their belts or making a case to Walmart that the price increases are inevitable.
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