“Walmart has rolled back its rollbacks”.
Walmart introduced this strategy that if they reduce their prices even less than its low price to overwhelm costumer, it will increase their revenue in the long-run because new and old customers will keep shopping in Walmart. However, their strategy seems to backfired at them. Customers will definitely shop in Walmart during the rollbacks but as soon as prices goes high, they run. Along with the rollbacks, the strategy also includes lessening the variety to make room in the Walmart. Apparently, customers like variety and this contributes to their problem.
Strategy or Tactic? Walmart may be thinking in long term but the outcome seems to be only short term. It is wise of them to terminate this strategy before it could harm the business more. Market demand is almost always unpredictable. Their reaction to their failure and acting to correct it is what makes them successful in the end. They took a risk and ran a trial run – that doesn’t mean it is bad strategy if they fail. They learn lessons from their failures and from that acquired knowledge, they could develop another better strategy for their company.
http://news.yahoo.com/s/time/20101013/us_time/08599202385700#mwpphu-container