Instead it has been heavily focusing on cost reduction and competitor's prices. It will probably learn the hard way what Kmart learnt when it started the same kind of price war with Wal-Mart and suffered immensely. As the result of that war, Kmart finally had to declare bankruptcy when Sears stepped in and took over Kmart operations. Woolworths somehow has failed to see this connection as yet. But it soon will as it continues to lose customers and sales continue to fall unless it does something dramatic like changing its pricing approach completely and focusing on buyer-seller relationship and marketing mix to come up with a...

This is because while $10.99 system worked well initially, customers no longer associate this with lower prices. They are smart enough to see through the system and feel as if their intelligence is being challenged. They are more comfortable with rounded figures that give them a much clear idea of what they will be paying at the cash register. Failure to read the customer's mind, to understand the changes that have taken place, and to keep abreast of those changes can also backfire…