Making almost zero net profit, Walmart has drastically reduced the prices on all of its beer in order to attract customers. Walmart is known for low prices, but now they're beer is taking that concept to a whole new level. Commerce-focused site Bloomberg managed to nab confidential Walmart documents revealing the superstore's market strategy and end goal. Both involve selling super cheap beer.
Strange for any retailer hoping to make profit, Walmart has begun selling some of its beer products at cost, the price the store itself paid without any added charges. A 36-pack of Coors Light was only marked up 0.6%, a stark contrast to the 29.9% mark up for bottles of Coke. Basically, Walmart plans on linking the idea of cheap beer prices to its brand, inception style. That way, once they do mark up the beer prices to gain profit, people will automatically associate buying beer and Walmart, and thus gain a slice of the $45 billion beer sales market.
Too good to be true? For Canadians, yes it is. As of now, Walmart does not sell alcohol in Canadian stores due to the very different alcohol and liquor sales that exist in our fair nation versus the U.S. But there may be a glimmer of hope for Quebecers and Montreal residents. Since retail stores in Quebec are allowed to sell beer and wine, we may see Walmart selling insanely cheap drank to lure in customers sooner rather than later. Here's to hoping.
Is Walmarts sales plan a good one? Are you desperately wishing Walmart starts selling cheap beer in Montreal? Sound off in the comments below.
Source - Bloomberg News