WHAT DOES TOO PROMOTIONAL MEAN…?

I'm looking over sales figures released by Walmart and the analysis of same by the BBC. Sales in the United States are down 1.6 percent, but one quote from Andy Bond, chief executive of ASDA, Walmart's United Kingdom operations, jumped out at me. When reflecting on the fact that ASDA had beaten its sales and profits targets -- a good thing for ASDA, I assume -- Bond said that his company had become too promotional. Now I read that to mean that the company had either used too much promotional pricing to draw traffic into the store or that it had spent too much on advertising. Since it had beaten its sales and profits targets being promotional, I don't get why that would be a strategy Bond would want to change. Bond wants to return to the Every Day Low Price model in 2010. Why return to a strategy in 2010 that wasn't working in 2009? Did Bond blow most of his advertising budge for 2010 over the past three months and now has to cover his butt? Why do business reporters never ask the right follow-up questions? Jeff Hess: Have Coffee Will Write.

One Response to “WHAT DOES TOO PROMOTIONAL MEAN…?”

  1. […] WHAT DOES TOO PROMOTIONAL MEAN…? I’m looking over sales figures released by Walmart and the analysis of same by the BBC. Sales in the United States are down 1.6 percent, but one quote from Andy Bond, chief executive of ASDA, Walmart’s United Kingdom operations, jumped out at me. Keep reading… […]

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