Walmart does not really have the lowest prices always
I just started a new book titled Big-Box Swindle by Stacy Mitchell. In the introduction she talks about the lowest prices myth that chain stores often perpetrate.
That chains are bigger and must therefore offer lower prices is such an ingrained notion that even critics often give them a free ride on this point. But this is not in fact always the case. Surveys in several states have found that independent pharmacies, most of which belong ot buying groups, have the lowest-prices on average, beating drugstore chains, supermarkets, and even Wal-Mart and Target. Independent appliance dealers had better prices than Wal-Mart and most large chains, according to a 2005 Consumer Reports analysis. Another survey found that the cost of an identical cartload of groceries varied widely at different Wal-Mart stores across Nebraska, apparently in relation to the level of nearby competition. As shown in this book, many chains rely on sophisticated pricing strategies to foster a perception among consumers that their prices overall are lower than they actually are, and they often enter new markets sporting steep discounts only to raise prices once rival business have closed. The only way to ensure vigorous competition and protect consumer welfare over the long term is to maintain a market with numerous competitors.
So don’t believe the smiley face who always says the prices are lower! This means you should really look at local independent businesses more often. You should even go on the Internet and check them out that way. But stay away from the big retailers.


Leave a Reply