Shopping giant Wal-Mart Stores Inc. was just an inch away from matching the online prices of their competitor Amazon.com Inc. for the first time. This development is an effort made by the company as it aims to regain its place as the low price leader.
Over the past few months, Wal-Mart has been actively involved in ensuring that their prices are more competitive against brick-and-mortar rivals, with huge investments made in this sector. The gap between the two has been reducing and the closing gap is now being noticed across several product categories online. This development was noticed after the studies conducted by Reuters confirmed that. Pricing experts, retail consultants, vendors and company sources have also noticed the shrinking gap and have commented on it.
At recent check, the price at Walmart.com was just 0.3% higher than those found on Amazon.com on average. This data was according to the study conducted, with Reuters analyzing prices of 213 products in 11 categories over a period of 700 days ending November 7, 2017.
In the first 350 days of the study, the prices of items on Walmart was higher than that of Amazon by 3% according to the research. In the fashion division, which includes items like fitness trackers and smartwatches, the prices on Walmart are 6.4% lower than Amazon this year. This time last year, the prices on Walmart for the same items were 12.6% higher than Amazon. A look at the sports and outdoor products indicated that the prices on Walmart are now 1.3% lower compared to last year when it was 3.5% higher.
This study has been able to prove that Walmart has done incredibly well in slashing their online prices across several product categories over the past few months. Having consistent low prices is one of the most important things in boosting sales throughout the year. Online deals and temporary promotions will perform better that pricing for both Walmart and Amazon during the Cyber Monday, a day that is the busiest shopping day of the year.
Wal-Mart spokesman Dan Toporek while commenting on the issue stated that “We are committed to having online prices that meet or beat prices at other top sites.” He further added that “Walmart now displays two prices online to show shoppers when they can get a lower price by picking up their order in a store.” He, however, declined to comment further on the company’s pricing strategy.
The spokeswoman for Amazon stated that e-commerce giants haven’t made any changes in their approach to deliver low prices to their customers. She stated that “Amazon’s prices are as low as or lower than any other retailer and we work hard for customers to ensure that’s true every day.”