Cutting Prices Without Cutting Profits

A case study.

Many retailers have run price-cutting campaigns—but most have failed to produce a dramatic improvement in competitive position, and have simply started price wars and hurt profits.

One major US grocery chain is a notable exception, having recently improved its shelf price position by 10% relative to competitors, while at the same time protecting its bottom line. This paper describes how it pulled off one of the boldest value repositionings ever undertaken.


Cutting Prices Without Cutting Profits

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