One of the basic rules of ecology is that everything is connected to everything. You can’t nudge one factor without creating ripples that will always, in ways great and small, alter every other factor in the system. And when you’re the brontosaurus in the swamp…
Thrashing your tail about wrecks havoc.
From the Associated Press:
Wal-Mart is counting on $1 ketchup bottles and sub-$4 cases of Coke to get its low-price mojo back.
The sharp cuts at its U.S. Walmart stores, which came ahead of Memorial Day weekend, have already pushed rivals such as Target into price wars. And the markdowns are expected to keep coming throughout the summer.
They’re one of the boldest moves the world’s largest retailer is making to turn around sluggish business at its U.S. namesake chain and win back shoppers from rivals. The cuts aren’t across the store but target 22 foods and other essentials at an average savings of 30 percent – splashy enough to get attention and perhaps change perceptions.
We’ve written before about both the ketchup as well as the carbonated and flavored sugar water discounts. There’s another rule in ecology that says each factor has a die-back point: when a factor becomes so large that it either consumes more resources than are available, or fouls its environment to the extent that it can no longer grow, then the population will reduce until neither is any longer the case.
Walmart is flailing, and the situation is not going to improve any time soon.