Why isn't Wal-Mart walloping Amazon?
The discount chain is competitive on prices, but more of its customers are still turning to the online retailer.
Many of us would say Amazon, but Wal-Mart offered a better deal Friday on that DVD, both in its stores and on its website. Amazon charged $26.87 for the disc set, while Wal-Mart charged $24.96.
In fact, Wal-Mart beats Amazon time and time again on pricing, a study by research the firm Kantar Retail found. But Wal-Mart doesn't advertise this fact at all, and more of its customers are jumping to Amazon all the time.
Amazon has a well-deserved reputation for beating on price. Wal-Mart can compete tooth and nail at this level, however, because it has spent decades perfecting its warehousing, distribution and supply-chain management. It's also notorious for bullying manufacturers into rock-bottom prices.
Kantar compared prices on 36 items and found that Wal-Mart is about 20% cheaper, on average, Bloomberg reports. The difference was starker on food, where Amazon's prices were nearly 60% higher.
But Kantar looked at only 36 items. Amazon beats Wal-Mart on many, many others, and shoppers know that. Other studies have found Amazon to be lower than Wal-Mart, particularly because it doesn't charge sales tax in many states. Still, Wal-Mart seems to be competing more aggressively with its online rival.
Why doesn't Wal-Mart do more to advertise its price advantage? Why isn't Wal-Mart shouting from the rooftops, "Hey, all you Amazon shoppers, check us out for a change!"
It doesn't want to. "We'll leave it to Kantar to talk about prices," spokesman David Tovar told Bloomberg.
Meanwhile, more of Wal-Mart's customers are discovering Amazon. Only 25% of Wal-Mart's customers shopped at Amazon five years ago, Bloomberg reports, but that's now up to 50%.
More on Top Stocks
Walmart Sucks! - Amazon the store of the future!
Amazon you can compare multiple products, read customer reviews and you don't have to listen to some skank complaining she hasn't gotten her cigarette break while waiting in some never ending line for 30 minutes - So what if it costs a dollar extra? It's worth it! Does that answer your question Walmart? And this article is misleading - get a free app from amazon and compare prices for yourself.
Oh and if you do go with Walmart more than likely the price will be more when you check out, they are notorious for jacking up the prices hoping you will not catch their "mistake"
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