International operations a focus area

One of Wal-Mart's priorities in recent years has been to find an international expansion plan that works. It has exited foreign markets like South Korea and Germany, where it failed to gain the footing it needed to become successful. At the same time, Wal-Mart entered China and India by using partnerships with existing retailers and found that its strategy worked much more successfully.

In North America, the company also expanded in Mexico and Canada. While it still holds the U.S. -- its largest market -- in a death grip, the majority of the company's growth won't come from U.S. sales in a few years. In fact, you could say that it's quickly reaching market saturation in much of the U.S., which is true. Hence, the hiring of international head Mike Duke recently to replace former CEO Lee Scott. No doubt, new CEO Duke's main priority will be to put a team in place to make Wal-Mart's international expansion as fluid, measured, and successful as possible.

Canadian operations sees new price chopping

Wal-Mart introduced the world to its "Save Money. Live Better" corporate slogan in early 2008 to replace the tired "Always Low Prices," and to emphasize the partnership it has with customers, rather than just being a provider of low prices. It was a wise decision -- the end of 2008 and early 2009 was a good time to help a new generation of customers save money and live better. Layoffs continue to this day, and the economy, housing and credit markets are still in upheaval: customers need a shoulder to rest on.

To take the concept further, Wal-Mart introduced a new logo and slogan into its Canadian operations last week. It's the same "Save Money. Live Better" concept it launched in the U.S., and it could not come at a better time. It's not only U.S. customers who are weathering a deep economic recession, but retail consumers in neighboring countries -- and indeed countries around the world.

In an effort to ensure recession-plagued consumers can find solace in its Canadian stores, the chain is also slashing retail prices on 20% of its products found on Wal-Mart Canada store shelves. At a time when many retailers are having to slash prices just to get foot traffic in the door, Wal-Mart appears to be doing the same thing. To many customers, though, Wal-Mart already has many of the lowest prices around. However, the retailer is making an impact by unveiling the new slogan and really proving the new slogan immediately by providing price cuts on some of the products that mean most to consumers.

Wal-Mart will maintain its success in Canada

Wal-Mart's new slogan for its Canadian marketing and the 20% off store merchandise won't hurt its sales and will do everything to make an impact on the psyche of the Canadian shopper. In fact, when this global economic recession is over, Wal-Mart will do its best to retain consumer dollars even as more discretionary income opens up and the competition comes begging for more shoppers.

Consumers will remember the retailer that helped them out in a time of need, and Wal-Mart is using timing here to really forge important customer loyalty in an important international market. Wal-Mart Canada spokesperson Kevin Groh indicated that "We saw it as a perfect fit for the Canadian market and the Canadian psyche ... for a lot of Canadians, saving money is living better and so we think it's a tagline that fits the Canadian consumer mind-set almost uniquely and perfectly." He's dead-on.

The 20% of products that will see immediate price rollbacks will include hot categories like electronics, apparel and food. While apparel and food are necessities, it's interesting to see that discretionary categories like electronics will see discounts as well. Groh did indicate that the level of price cuts will depend on the actual product though. No across-the-board deep price cuts are on tap.

Wal-Mart will weather the 2009 global economic storm with a slight tarnishing but not much else, so retail will be an interesting game to watch as it unfolds this year.

Stay right here at BloggingStocks this time next week to enjoy another edition of the Wal-Mart Weekly. Until then, have a great week!