Competitive Holiday Season Looms Ahead

Walmart is the world’s largest retailer. Despite this, the company still has fierce competition with other firms such as Kohls and Target. Though Walmart reported a quarterly upturn in sales when matched against comparable firms, it still has much to worry about. More so than ever, Walmart is feeling the effects of online shopping. There is an intense rivalry between Walmart and online firms such as Amazon. This worry is increasing as we approach the holiday season, a season in which sales are at their peak. To combat this threat, Walmart is instituting a price match feature at all 4,300 U.S. stores. Essentially, if shoppers can find a product for a cheaper price online, Walmart will match the price in stores. Sales in stores have been rising, but the increase has been primarily limited to home goods, health, and apparel departments. Many of the objects that are true luxuries are being bough online, and Walmart wishes to change this before the holiday season is upon us. So far this method seems to be working. Walmart’s total revenue has increased by 2.9%, bringing it to a total of $119 billion for the 13 week quarter. In comparison, similar firms only experienced an average increase of 0.5%.

This is a great example of a competitive market. Though it is not for a specific product necessarily, these ‘super stores’ as a whole can be directly compared. They are in constant competition and utilize the strategies of other firms to increase their own profits. I find it very interesting how the online market has a direct impact on the sales in physical stores, and what various firms are doing to counter the loss of sales. It will be interesting to look at the numbers after the holiday season and see if this strategy truly works. From a consumer standpoint, it seems like a good deal. You can buy a product for the same price as online without paying and waiting for shipping. I am excited to see if Amazon and other online retailers bring about a new deal to counter Walmart’s latest move.

2 Comments »

  1. Anastasiya Khlopina Said,

    November 16, 2014 @ 12:02 am

    Great comment and an interesting article! Indeed, companies have to come out with new ways to win consumers. I think that Walmart’s strategy will work well for them. However, since both Walmart and Amazon are “network services”, the competition will only become more tense.

  2. trimarcr Said,

    November 19, 2014 @ 2:15 pm

    This is a very relevant article to the demand and supply curves in the current market. It fascinates me how competitive, large retailers and firms are nowadays. I completely agree with Anastasiya that the competition will only elevate from here. Popular retailers are always looking to attract more customers in order to increase their profit and beat competitors. Lastly, as a customer myself, I am definitely for decreasing the store prices to online pieces as I will not have to wait and pay for shipping and handling.

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