Retailer expects 40% increase in number of price reductions leading into
MISSISSAUGA, ON, Oct. 23 /CNW/ - In advance of today's retail industry
meeting with Canada's federal finance minister, Jim Flaherty, Wal-Mart Canada
Corp. has announced its best-ever year of price reductions, and plans to
rollback 40 per cent more prices leading into the holidays. This year, on
average, the company has offered a price Rollback on more than 5,000 items
each week, a 20 per cent increase over last year. The company has committed to
7,000 Rollbacks weekly leading into the holidays. It estimates that by year
end Wal-Mart stores will have offered Canadians savings of tens of millions of
"Now, as always, we expect to be Canada's price leader," said Mario
Pilozzi, Wal-Mart Canada's president and CEO. "With the strength of the loonie
and customer expectations climbing, there is a new standard for price
leadership. We accept that challenge and we are committed to lowering the cost
of living for Canadians even further."
For more than a full year, Wal-Mart Canada has been negotiating with
suppliers in an attempt to turn a higher loonie into lower prices for its
customers. In a letter dated August 1, 2006, the company told suppliers:
"Lowering the cost of living for Canadians has long been Wal-Mart Canada's
mission... The Canadian dollar is trading at near-historic highs, providing
unanticipated inflation of profit margins among our suppliers - and an
opportunity to lower prices for Canadians."
As the loonie has continued to rise, the company has continued
negotiations and achieved some major successes - lowering thousands of prices
throughout the store.
"Canadians are not satisfied, Wal-Mart Canada is not satisfied, and
negotiations continue," said Pilozzi. "We are the agent for our customers, and
will continue to work proactively with suppliers to negotiate lower prices. We
are committed to turning our negotiations into many pleasant surprises for our
customers between now and the New Year."
Founded in 1994 and based in Mississauga, Ontario, Wal-Mart Canada serves
more than one million Canadians each day at its 293 outlets. In its first
decade of operation, analysts estimated that Wal-Mart helped lower the cost of
living for Canadian customers by four to 10 per cent.
For further information:
For further information: Kevin Groh, Director, Corporate Affairs,
Wal-Mart Canada, (905) 821-2111 x. 8012