Wal-Mart has gone on the offensive in Germany with a two-month price cutting campaign across all categories. The cuts will cover over 300 food and non food products ranging from video recorders to jam, for 60 days at all 95 stores in Germany. A 20-page consumer leaflet outlining the deals has been distributed to over 10 million households. This will be backed by instore activity and "extensive communication measures and numerous promotional activities". It is not clear whether Wal-Mart was hit by the price cutting bonanza initiated in the new year by rival Aldi, which slashed prices on everything except tobacco to allay fears of price hikes during the euro changeover. At the time, Wal-Mart kept a low profile, while other major players in the market including Metro, Tengelmann, Lidl, Rewe and Norma immediately announced a raft of cuts in response. However, the new campaign is designed to re-establish Wal-Mart as the lowest price operator in the market in the mind of the consumer, said Wal-Mart Germany md Dr Kay Hafner. "These days, our customers place more value than ever on low prices," he said. "This is our way of passing on savings that we make through using modern systems and concessions that we receive from suppliers straight to our customers. "Unlike conventional one-off prices or weekly promotions, these special low prices are effective for at least two months. "The brochure alone enables savings for our customers of more than E500." Although food sales have held up against a background of declining retail sales in Germany this quarter, the market remains extremely price competitive and price will remain the most important driver of sales for the immediate future, according to German retailers' association HDE. In January, Wal-Mart said the company had reduced operating losses, improved operational efficiency and improved margins in Germany, but would not indicate if or when it expected to break even. {{NEWS }}