Case Study II: Walmart Strategy On May 17, Walmart released its lackluster quarterly earnings. Thanks to inflation, prices have hit new highs, and customers nationwide have been opting to spend on food or experiences rather than big- ticket, profit-driving items. But while the pressure is now on Walmart to get numbers up, surging prices could actually be opportune for Walmart, Robby Ohmes, retail analyst for Bank of America, told CNBC. The pilot store, which is in Northwest Arkansas, has a different strategy for product layout. Aisles in the clothing section are wider and packed with fewer racks, making it easier for customers to browse. National brands like Reebok have their own space, as do Walmart's individual fashion brands and home brands, CNBC reported. Brands that speak to the younger crowd also get more space with this model, the outlet said. Don't expect to see those large "Everyday Low Price" and "Rollback" signs we're all so used to seeing- Walmart is moving away from that approach. At the Arkansas store, smaller price signs accompany both big-brand clothing items and Walmart's "elevated clothing brands," CNBC reported. "We're selling apparel in a grocery store, however that doesn't mean we have to sell apparel like it's grocery," Alvis Washington, vice president of marketing, store design, innovation, and experience for Walmart, said (via CNBC). "Apparel is a discretionary category. It's emotional. You want them to fall in love with the fashion." Rather than letting the low price be the selling point, Walmart is allowing "the product to be hero," Washington said. At the Arkansas store, for example, that's exemplified by a larger selection of wines, including those that are pricier, and a millennial-friendly craft beer section. Loyal Walmart customers don't have to worry about increasing prices, thankfully, as Walmart execs confirmed they are keeping those "entry-level price points" for those on a budget, CNBC reported. But the retailer does want to have customers coming to them for higher-margin clothes and household amenities instead of just food items-particularly as people become "more value-conscious," Redfield said. Question 1: Discuss some predictions for the retail shopping industry based on principles of price changes (5Points). Question 2: Companies need to manage customer equity carefully, in terms of profitability, investment, and loyalty. Evaluate the types of customers at Walmart and how they are building the right relationship (5Points)