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Wal Mart announcing yet another round of price cuts

Spurred on by low October sales and the grimmest outlook for November in a decade, Wal Mart inc. is returning its focus on what it does best: offering everyday items at lower prices than anyone else. It?s a reversion from its failed strategy to provide consumers not only with everyday items but to somehow add hip new ranges, for example its fashion line Metro 7 to its range. But Wal Mart appeared to have learned its lesson: that a mega discounter is simply not credible to many when trying to be appreciated as a hip fashion retailer.

So for this Christmas Season, it`s back to the roots for Wal Mart. It has already lowered many prices, first on more than 100 toys, later on almost 100 electronic items, and now it has announced a further slash in prices on about 50 small home appliances like microwaves and coffee machines. It?s a Christmas heaven for the consumer.

But as much as the customers will be laughing all the way to the bank, it`s a gamble for Chief Executive Lee Scott. With prices this low, any failure in strategy is likely to hurt profits substantially. Wal Mart needs to make up for the failure to sell trendy items in its annual profits already, so if attracting consumer spending won`t proof to be such a hit as expected, this might be a difficult year for the gigantic discounter. But for now at least, it`s heading for a merry Christmas indeed.