In the upcoming issue of COLLOQUY — soon to arrive, we promise! — you’ll find a cover story I wrote about today’s “squeezed” middle class that craves value from loyalty program memberships and retail relationships.
That value isn’t necessarily derived from lower prices — though, of course, price is a strong loyalty motivator for consumers. As a giant retail leader that can compete on price better than any company thanks in large part to its economies of scale, Walmart has enjoyed a serious advantage with its Every Day Low Prices.
Over the past couple of years, more and more grocers, drugstores and other retailers have looked to compete with Walmart through other types of discounts and incentives — particularly those related to fuel. With the economy still struggling and gas prices going sky high, consumers have been particularly responsive to cents-off-per-gallon offers when they do their grocery shopping or buy at the local convenience store.
The news, then,...