RetailWire BrainTrust Post: Study: Promo Strategy Better for Grocers vs. EDLP

On RetailWire, there is a discussion about how Hi/Lo pricing is a better pricing strategy for grocers going up against big-box stores than EDLP (Every Day Low Pricing).

The discussion questions were: "Do you agree that promotional pricing is generally a better option for grocers than EDLP when competing against bigger-box EDLP models? What consideration should be given to the costs of switching from one pricing model to the other?"

Here is my response:

I am reminded here of the immortal line from "The Princess Bride":

"You fool! You fell victim to one of the classic blunders - the most famous of which is "never get involved in a land war in Asia" - but only slightly less well-known is this: "Never go against a Sicilian when death is on the line"!" [laughs maniacally, then keels over dead]

I hereby offer up the third-most-well-known classic blunder: "Never go up against Walmart using an EDLP pricing strategy"!

You'll have better luck winning a land war in Asia....

You can find all my RetailWire BrainTrust comments on my RetailWire blog.