Walmart Is Losing the Low-Price Wars to Dollar Stores

WMT is no longer the 'price leader' in the discount sector

   
Walmart Is Losing the Low-Price Wars to Dollar Stores

Family Dollar (FDO) and Dollar General (DG) are now cheaper than Walmart (WMT), according to Sterne Agee analysts.

Family Dollar shoppers paid 2.7% less on purchases than Walmart shoppers in January, the analysts found. Dollar General shoppers paid .2% less. 

“Walmart has conceded the ‘price leader’ crown to Family Dollar,” analyst Charles Grom wrote in a research note.

That’s a reversal from May 2013, when “Walmart was the clear pricing leader” with savings of nearly a nickel per dollar spent at the other discount retailers, he wrote.

“In the four subsequent price checks since that time, [Walmart] has continued to lose ground,” Grom wrote.

Grom and a team of shoppers compared the prices of 42 identical items at the three retailers for the report. This is the fifth time that the team has conducted the pricing research since May of 2013.

In January, the cost of the baskets totaled $149.51 at Walmart, $149.15 at Dollar General and $145.59 at Family Dollar.

The cost of the baskets has dropped by $9.37 and $4 at Family Dollar and Dollar General, respectively, since May 2013.

By comparison, the cost of the baskets has increased $2.36 at Walmart.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/02/walmart-wmt-fdo-dg-discount-retailers/.

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