CNBC has a story about how Walmart "is doubling down on one of its key competitive advantages as more Americans buy new clothes, teeth-whitening kits and other merchandise to go back into the world again." The focus is on low prices - Walmart U.S. CEO John Furner says that the retailer had about 30 percent more discounts during Q1 than it did a year ago.
According to the story, "Furner said undercutting rivals on price is especially important as more shoppers feel comfortable going to different stores to compare and get the best bargain. During the peak of the health crisis, consumers tended to limit their shopping trips, buy numerous items at a single store and go to one that’s nearby.
"That may change as people worry less about their safety and more about their budget while juggling a growing list of expenses again, such as commuting to the office, restaurant meals and hotel stays. 'Value could be more important than convenience' this year, he said.
- KC's View:
It isn't just traditional retailers - and Amazon - that Walmart wants to create distance from, of course. It also is the dollar store and limited assortment store segments, which have been growing and are a threat to Walmart's longtime positioning.
These competitive battles have the potential to affect a lot of other retailers, who could end up being collateral damage if they have no established specific and consumer-centric differential advantages.