Wal-Mart Rolls Out Everyday Low Prices Strategy Overseas

Wal-Mart Stores Inc. is rolling out its "everyday low prices" (EDLP) retail strategy to more international markets to replace the more usual high-low pricing in emerging markets. EDLP has already been introduced successfully outside the U.S. in the U.K., Mexico and Canada. EDLP means working with suppliers to ensure their prices are constantly low, but also means price changes are kept to a minimum. Wal-Mart's international operations saw 11.5% growth in the first quarter of 2011, helped in part by lower prices. In Brazil, EDLP has helped Wal-Mart reduce the number of price changes by 60% and lines at registers by 53%. The strategy even helped Wal-Mart enhance its public image in Japan's earthquake-ravaged regions. Improving its international business, which accounts for more than 25% of its $420 billion in sales, has gained importance as Wal-Mart's U.S. stores face dropping same-store sales and traffic.