discount division recorded its fourth consecutive quarter of declines in revenue at stores opened at least a year, a critical yardstick for measuring a retailer's health. On top of that, the retailer's primarily lower-income customers continue to cut back on spending during the economic recovery.Īs a result, Wal-Mart's U.S. But Wal-Mart's "every day low price" model is under attack from dollar stores and grocery stores like Kroger in addition to the Amazons of the world. Wal-Mart built its business on offering lowest prices on staples such as milk, bread and laundry detergent. Ken Perkins, president of retail research firm Retail Metrics LLC, said the move will "put pressure on everyone else to follow suit." But he and other industry watchers voiced concerns that the tool doesn't compare prices of online retailers.Īfter sending queries to some of Wal-Mart's competitors, it wasn't clear on Friday afternoon whether they planned to follow the move. But Wal-Mart is the first traditional retailer to offer such a program, and if it's successful, others may follow. The idea behind Wal-Mart's online feature, on the other hand, is to do the legwork for customers.Ĭitibank launched a similar program two years ago that sends Citi credit card customers a check for the difference if Citibank finds a lower price from an online retailer. Shoppers do this so often that big retailers that include behemoths like Target and Best Buy have started offering to match the lower prices of rivals - but only if shoppers do the research on their own. After all, Americans already increasingly are searching for the lowest prices on their tablets and smartphones while in checkout aisles. The move by Wal-Mart, which has a long history of undercutting competitors, could not only change the way people shop, but also how other retailers price their merchandise. The tool compares advertised prices at retailers with physical stores, and not at online rivals like that also offer low prices on staples. The world's largest retailer began offering the feature, called "Savings Catcher," on its website late last month in seven big markets that include Dallas, San Diego and Atlanta.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |