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Brian Albrecht explains that with its larger scale and lower costs, Walmart is able to extend price cuts to more shoppers compared to a competitor's price hike.
He argues that if the price moves are one-for-one, consumers overall benefit, as the gains from buying more goods cheaply at Walmart outweigh the costs imposed by the smaller rival's higher prices.
Albrecht has previously commented on trends shaped by large-scale market players. In a recent article, he noted that changes in the U.S. economy take time to appear due to its massive scale and complexity. His latest analysis extends these observations to differences between major retailers and their smaller competitors.