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Wal-Mart’s Strategy: Keep Customers, Lose Earnings

Battling consumer brand confusion and a recessionary economy, retail giant, Wal-Mart, won back some consumers during the holidays by competitively slashing prices. But the victory may have been bittersweet – the lower pricing also meant the company missed its profit forecasts.

This hack-and-slash strategy may not change anytime soon, either. Continued economic pressures may force even more price cuts – keeping consumers in the aisles, but ultimately spending less.