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(Spa Botanica, 2012, Walmart Logo)
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From the 1970s to the 1990s, Wal-Mart emerged at the low end
of the market, offering customers low prices through efficient operations.
However over time the retailer became ‘fat’ as a result of letting their prices
increase. This was as a result of upgraded facilities and improved service
which in turn increased the retailer’s prices. Through this, the brand became
replaceable and was turned down for lower priced competitors- and thus the
cycle was complete (Gilmore. D, 2007).
This theory again contrasts the groups pricing strategy as
Solent Reds can only obtain their products from one supplier, who has a fixed
selling price for the goods. This prevents the brand being able to move through
the Wheel of Retailing.
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