Walmart costs 32% more than grocery stores!

  • Post category:Deals
To understand how this can be, you have to understand Walmart’s pricing model.  Walmart uses the Everyday Low Prices (EDLP) which means they never have a sale, but have across the board discounted prices.  From what I have seen, items are discounted about 18%.  This isn’t universal.  In some cases, Walmart’s prices are actually higher than the regular price. Grocery stores generally use the High-Low or Deep Discount pricing model.  This means occasionally the item goes on sale with a deep discount in a cycle.  In grocery stores, this is at least 40% off of the regular price.  Pretty much everything in the stores goes on sale every EIGHT to TWELVE weeks.  To fully take advantage to these discounts, you have to buy enough to late you until the next time the item goes on sale…every EIGHT to TWELVE weeks. The main problem with grocery store’s High-Low model is that in the weekly ad, they hide the real sales in the middle of a bunch of fake sales. This is why so much of America has turned to stores like Walmart, Winco, and Trader Joe’s and their Everyday Low Prices pricing model.  Enter internet couponing blogs.