BENTONVILLE, Ark — As expected, Wal-Mart Stores here has thrown down the gauntlet and begun promoting reduced pricing on consumables. How the traditional grocery industry responds to the challenge — and what impact the price cuts might have — is not yet clear. The initial rollbacks “do not look overly threatening to the grocery channel,” said Mark Wiltamuth, managing director of Morgan Stanley, New York, “There [has been] little change in Wal-Mart' relative price advantage over conventional ...

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