Wednesday, November 25, 2009
Today in marketing: Walmart fudges the numbers. No one is surprised.

TV AD: The family budget. In today's economy nobody is more committed to helping family budgets go further than Wal-Mart. Wal-Mart saves the average family about $3,100 a year, no matter where they shop.

What?! OK, how can Wal-Mart save you money if you don't shop there? Well, they say, other stores cut their prices to compete.

CHRIS HOLLINGS: The overall level of consumer prices are lower essentially anywhere you shop.

Chris Hollings is at IHS Global Insight.

HOLLINGS: So you do not actually have to shop at Wal-Mart to get these savings.

Hollings led the research Wal-Mart uses in its ad. He says by tracking Wal-Mart's expansion, his team was able to isolate an economic Wal-Mart effect. Today he says prices for retail goods are 3.6 percent lower across the board because of the chain. But to save more than $3,000 a year a, quote, "average family" would have to spend more than $83,000 shopping.

CHARLES FISHMAN: This headline number is technically accurate but misleading.

Charles Fishman is author of the book, "The Wal-Mart Effect." He points out that the median household income is less than $51,000.

FISHMAN: A family earning $51,000 a year saves about $640 a year compared to what they would otherwise have had to spend.

-- full story at Marketplace

archives

May 2000   June 2000   July 2000   August 2000   September 2000   October 2000   November 2000   December 2000   January 2001   February 2001   March 2001   April 2001   May 2001   June 2001   July 2001   August 2001   September 2001   October 2001   November 2001   December 2001   January 2002   February 2002   March 2002   April 2002   May 2002   June 2002   July 2002   August 2002   September 2002   October 2002   November 2002   December 2002   January 2003   February 2003   March 2003   April 2003   May 2003   June 2003   July 2003   August 2003   September 2003   October 2003   November 2003   December 2003   January 2004   February 2004   March 2004   April 2004   May 2004   June 2004   July 2004   August 2004   September 2004   October 2004   November 2004   December 2004   January 2005   February 2005   March 2005   April 2005   May 2005   June 2005   July 2005   August 2005   September 2005   October 2005   November 2005   December 2005   January 2006   February 2006   March 2006   April 2006   May 2006   June 2006   July 2006   August 2006   September 2006   October 2006   November 2006   December 2006   January 2007   February 2007   March 2007   April 2007   May 2007   June 2007   July 2007   August 2007   September 2007   October 2007   November 2007   December 2007   January 2008   February 2008   March 2008   April 2008   May 2008   June 2008   July 2008   August 2008   September 2008   October 2008   November 2008   December 2008   January 2009   February 2009   March 2009   April 2009   May 2009   June 2009   July 2009   August 2009   September 2009   October 2009   November 2009   December 2009   January 2010   February 2010   March 2010