BENTONVILLE, Ark.–Wal-Mart’s home business is outpacing its “biggest competitor,” a reflection of a heightened price-rollback strategy, executives said during the retailer’s analyst meeting here yesterday. New exclusive lines like the Better Homes & Garden collection and remodels are also driving sales, they said.
Comp-store sales for home at Wal-Mart rose 0.2 percent in the most recent quarter, while home comp-store sales at its unnamed largest competitor fell 4.3 percent, said Eduardo Castro-Wright, president and chief executive officer of Wal-Mart U.S.
“It’s remarkable that our [home] business is healthy and growing given what’s happening with the home business at home improvement stores and the home business period,” Castro-Wright said.
The retailer also introduced hundreds of price rollbacks in the home category.
“Our key competitors have prices 15 to 50 percent higher [than Wal-Mart] in home,” said Linda Hefner, executive vice president of home.
The retailer has also rationalized its home brands and is showcasing Canopy, a new private-label brand that is priced lower than competitive offerings; Better Homes & Gardens, a new exclusive brand based on the shelter book; and Mainstays, an opening price-point brand, “as a trifecta of brands” on store shelves, Hefner said.
The brands are pulling in double-digit comp-store sales gains in key home categories, Hefner said.
Mainstays, with 4,000 SKUs across home, has been relaunched with a quality upgrade while price points have come down.
Wal-Mart has also finally zeroed in on the right home merchandising format, which includes wider aisles and lower fixtures that it has tested in 30 stores. Home has done so well in those stores that the prototype will be rolled out to the entire chain, executives said. Overall, the retailer is investing $1.7 million in remodels.
Wal-Mart has also identified cookware, bakeware, cutlery and dinnerware as key growth categories as people are eating more at home, Hefner said.
Wal-Mart’s senior ranks were bullish on the retailer’s business overall during the economic malaise, with Lee Scott, president and chief executive officer, declaring “this is Wal-Mart time.”