Let the Holiday Price Wars Begin — Wal-Mart Targets Amazon

by | Oct 31, 2014 | Blog

holiday price wars

On-AMZN: ย Thanksgiving is not even upon us, and the holiday price wars are already heating up. ย The Wall Street Journal reports that Wal-Mart is testing a program to match prices from online competitors like Amazon. ย To date, Wal-Mart’s price comparison policy has been for local brick-and-mortars retailers. ย One of the interesting data points is that “in August, Wal-Mart’s prices dropped to nearly 10% lower than those of Amazon, where prices have been increasing”. ย This is another sign of a slow shift at Amazon from being a “EDLP” (Everyday Low Price) retailer to a “target-based” pricing retailer where prices can be dynamic and convenience is valued as much as fair prices.

WSJ: ย Wal-Mart Targets Amazon

By Shelly Banjo

Wal-Mart Stores Inc. is testing a program to match online prices from rivals such asย Amazon.com Inc. this holiday season, a move that could make the discounter more competitive but cut into earnings.

Wal-Mart executives are discussing whether to go ahead with the price-matching program, which would expand its one for local brick-and-mortar competitors, according to spokeswoman Deisha Barnett. Under consideration is how much Wal-Mart might lose if the program were to go nationwide, people familiar with the matter said.

Ms. Barnett said the companyโ€™s focus is on taking care of customers and said store managers have had discretion to match certain online prices for customers for some time.

Wal-Mart has long resisted matching online prices, even as competitors Best Buy Co. and Target Corp. adopted the practice to keep customers from โ€œshowrooming,โ€ or browsing brick-and-mortar stores but subsequently making the purchases at online competitors.

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