Wal-Mart and Macy's - Leading the Way for Retailing Strategies

As the global recession continues on, retailers like Wal-Mart and Macy's have found ways to appeal to the more price conscious consumer of today. Consumers are now looking for better deals instead of better brands. Companies like Wal-Mart and Macy's have noticed the trend and are now choosing to sell more of their store brands. Wal-Mart's Great Value brand has, over time, become the most profitable for the company. Macy's is pushing it's My Macy's initiative nationwide in order to tailor it's merchandise to specific market segments.

Many other companies such as Best Buy and Kohl's are also choosing to offer more private label products in order to keep up with their "new" consumers. These retailers are also expected to downsize their packaging, store size, and growth expectations in order to rebound from the nation's falling economic conditions. Some companies have also adopted the sales tactic of selling only a small amount of brand name goods as a way to increase exclusivity. This way they would be able to sell these products full price.

I understand why these companies are choosing to produce more private label brands. If that is what consumers are buying, then it makes sense to sell more. I am more of a brand name girl, so the idea of the stores selling these brands full price has a negative affect on me. I feel as if the companies are forcing consumers to buy their private label products. This will most likely slow down the number of sales that stores are having, which is not good for consumers like me.

Article found at: (http://online.wsj.com/article/BT-CO-20090323-705244.html?mod=dist_smartbrief )