Wal-Mart Plans To Reduce Grocery Prices; Analysts Fear A Price War

Wal-Mart said it plans to lower the prices of grocery products it sells at its U.S. stores in response to growing price pressure in the food retail market. Data from Nielsen showed grocery sales volume in the U.S. has been eroding progressively since April 2013, a trend the market research firm expects to persist until next year. In response, Wal-Mart is expanding its marketing promotions and deals, hoping that such initiatives would help drive sales. Food companies, including Campbell and General Mills, have been offering heavy promotions, which might trigger a price war in the market, as some market analysts fear.