Why Wal-Mart Offers Warehouse Clear-Out

By Paul Ausick Updated Jan 13, 7:12AM EST · Published Jun 4, 9:45AM EDT

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Why Wal-Mart Offers Warehouse Clear-Out — © courtesy of Wal-Mart Stores Inc.

When Wal-Mart Stores Inc. (NYSE: WMT) doesn’t have a holiday to use as the underpinning for a promotion, the company creates one, usually in the form of a warehouse clearance. Memorial Day is behind us and a month remains before the Fourth of July, so this is a good time for a clearance promotion.

In addition to the clearance aspect of the promotion, Wal-Mart also touts its Rollback pricing on dozens, if not hundreds, of items. Rollback pricing is nothing new for Wal-Mart. The company tried to downplay its low-price image back in 2009 and 2010 when shoppers strapped for cash during the height of the financial crisis turned to Wal-Mart in huge numbers. Eventually, though, low-price leadership made a comeback and has become the company’s mainstay again.

This weekend, for example, Wal-Mart is offering clearance pricing on an Intex queen-size guest airbed. The airbed is really two mattresses that can be stacked and locked or can be used as two separate beds. The clearance price is $19.97, a savings of 49% from the list price. Shoppers will need to add another $30 or so to qualify for Wal-Mart’s free shipping on orders of $50 or more.

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A “here comes summer” item that is marked as available “Only at Walmart” is a Better Homes and Gardens five-burner gas grill that sells for $349, a discount of 36% from a list price of $545. Shipping is free, but the company charges a handling surcharge of $99.97. This grill is not available in Wal-Mart stores.

Rollback pricing is available on a Mainstays Albany Lane five-piece folding seating set in a variety of colors. Four chairs and a small table cost $89, a savings of 44% from the list price of $159. Free shipping or free store pickup is also available.

Low pricing, however it is promoted, is Wal-Mart’s story and the company is sticking to it. Whether it’s a clearance sale, Rollback pricing or the “everyday low price,” Wal-Mart wants customers to think of it first when looking for a deal on any item. With the money they save, maybe they’ll buy even more. It has worked for the company for decades and there’s no reason to believe it will stop working anytime soon.

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About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.