Walmart is implementing some deep price cuts on products, and the effects could be far reaching.
Companies impacted the most by the big-box retailer’s slashed prices include Target, Family Dollar and Dollar General, which may see lower earnings if they drop prices to compete, Business Insider reports this week.
“All three companies stand to lose a collective $35 billion in revenue as a result of Walmart’s cuts,” Business Insider says.
Dropping prices is part of Walmart’s plan to increase in-store traffic. The grocery category is one of the main areas where the retail giant is making changes, lowering prices by 10 percent, according to Business Insider.
The big-box giant had also planned price cuts on consumables, such as laundry detergent and windshield wiper fluid, and over-the-counter drugs, a June Business Insider article says.
Most independent home improvement retailers don’t compete with Walmart on selling groceries, but Walmart’s lower prices could attract more customers who pick up hardware and lawn and garden products while they’re buying food.