Merchandising and Pricing Strategy Flashcards

What does Walmart's 'Everyday Low Price' (EDLP) strategy primarily aim to avoid?

Answer: Frequent high-low promotional pricing swings

EDLP keeps prices consistently low rather than relying on temporary sales and promotions.

A customer asks why an endcap display is used near a store aisle. What is the main merchandising purpose of an endcap?

Answer: To highlight featured or promotional items for higher visibility

Endcaps draw attention to featured products and drive impulse purchases.

When a product's shelf tag shows a 'rollback' price, what does it indicate?

Answer: A temporary reduction below the regular price

A rollback is a temporary lowering of an item's price for a limited time.

Why is keeping shelves fully stocked ('zoning' and facing) important to merchandising?

Answer: It improves product availability and presentation, increasing sales

Well-faced, stocked shelves make products easy to find and look appealing, boosting sales.

What is the primary goal of placing high-margin impulse items near checkout lanes?

Answer: To encourage last-minute add-on purchases

Checkout placement leverages waiting time to prompt small impulse buys.

If a competitor advertises a lower price, what is Walmart's typical pricing response philosophy?

Answer: Stay price-competitive to maintain low-price leadership

Walmart aims to remain a low-price leader by staying competitive on key items.

What does 'planogram' compliance refer to in retail merchandising?

Answer: Arranging products on shelves according to a set visual layout plan

A planogram is a diagram dictating where and how products are placed on shelves.