Walmart will offer 10 to 50 percent discounts on 16,000 items to boost sales during the lucrative back-to-school season. The cuts are part of Walmart’s broader plan to abandon its pursuit of the upscale market, which “confused customers,” and return to its core business of undercutting competition and instigating price wars.

From the AP:

Wal-Mart has been playing up its low prices since late last year after getting hurt by a focus on trendy merchandise in an effort to get affluent customers to buy more than just groceries. While the upscale strategy worked in electronics, it failed in home furnishings and apparel, resulting in sluggish sales since last fall.

Skittish investors are already worried that a price war might decimate profits for J.C. Penney and Sears. Good deals on colored pencils and graphing calculators should appear in stores by the end of the week.

In bid to revive sales, Wal-Mart will slash back-to-school prices [AP]
(Photo: laffy4k)

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