I have one major problem with this type of pricing is it real? The whole idea is that products are continually priced very low on a consistent basis. Leaving not much margin for profit. OK that seems like a good way to get value for a customer but, why then do stores that use this method put things on significant sales.
If they were really putting things at bottom line prices how could large price reductions be possible. I understand things may need to be put on sale for clearing inventory but still they cant be loosing much money. Or else it seems these sales would catch up to them.
This strategy has helped many large stores become successful in recent years it is apparent this may be the wave of the future.Many companies are now switching to this strategy to stay competitive.
Here is an article on J.C. Penney moving to (EDLP)
http://www.dailyfinance.com/2012/02/02/why-j-c-penney-will-never-be-great-again/
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