|"Wal-Mart also is working with suppliers to cut..."|
|Wal-Mart also is working with suppliers to cut costs|
Outside the U.S., the world’s largest retailer also is many high quality cheap clothes or rolling out the concept in countries such as Brazil and Honduras to keep those regions growing; Wal-Mart reported 11.5% international growth on the cheap clothing stores . In these emerging markets, consumers have been more used to so-called high-low pricing, where prices change based on things such as promotions or special sales events.
Wal-Mart also is working with suppliers to cut costs and give it low prices consistently, in comparison with some traditional strategies where suppliers sell to a retailer at there are new styles cheap clothing online and help them with so-called markdown money if demand doesn’t pan out as expected, analysts said.
“When you go from high-low to all of a sudden you tell people you are going EDLP, they are confused,” said BMO Capital Markets analyst Wayne Hood. “It takes an extremely long time to my friends like to wholesale designer clothes at this store behavior and get suppliers on board. But it could benefit them eventually. High-low pricing is inherently a higher cost model.”