Dive Brief:
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Earlier this week, Wal-mart announced it would get deeper into the $2 billion used video game market by paying store credit for pre-owned games at its Walmart and Sam’s Club stores as of March 26. Previously the retailer only accepted a few used games, only online.
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Following this announcement, this Friday the retailer kicks off a “spring sales event,” with prices lowered as much as 30% to 50% on garden supplies and outdoor furniture.
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Wal-Mart Stores says it hasn’t run a spring sale of this magnitude before. The company hopes that the sales event and the video game policy will help get people into the store.
Dive Insight:
Here we go again — low low prices just to get people into the store. This is how retailers like Best Buy got themselves into trouble over the holidays, with desperation-level price cuts that drove into the bottom line. Walmart’s sale will only last as long as supplies do, the company says, and so far the price breaks are limited to garden supplies. But this could be a crocus-like sign that prices are going to melt this spring as retailers try to entice people to open their frozen wallets.