Wal-Mart Stores Inc. (NYSE:WMT) to Match Prices with Competition

Wal-Mart Stores Inc. (NYSE:WMT) is now considering matching its prices to those of online competitors, such as Amazon.com Inc. (NYSE:AMZN). This will increase the stakes for the coming shopping season. Wal-Mart Stores Inc. (NYSE:WMT) is the world’s largest retail brand, based in Arkansas. They had changed their prices to match those of local store competition but had not considered the online competitors unlike several other retailers. Wal-Mart Stores Inc. (NYSE:WMT) say that they are currently testing the effectiveness of this strategy, after which they will take decisive action about whether to go ahead with the scheme or not.

Aggressive competition from many online retailers and drugstores in the U.S. has pushed the sales of Wal-Mart Stores Inc. (NYSE:WMT) down. The company is trying to recover using this strategy of matching prices, which could potentially impact profits negatively. The U.S. Wal-Mart Stores Inc. (NYSE:WMT) stores have not seen key sales any growth in six consecutive quarters.

Wal-Mart Stores Inc. (NYSE:WMT), unlike its online retail competitors, has to maintain brick-and-mortar stores as well as online stores. This is why the strategy of changing prices to meet those of online retailers, who do not have any physical locations to maintain, needs to be seriously considered in terms of profits.

The pressure on Wal-Mart Stores Inc. (NYSE:WMT) and their newly adopted strategies show the impact of holiday season on stores. Retailers need to step up their games in order to draw in more traffic for the holiday shopping that comprises 20% of the yearly sales in the retail industry. National Retail Federation has forecasted that sales in the holiday season will increase by 4.1% up to $616.9 billion. However, the online sales will expectedly increase from 8% to 11%.

Overall it seems that stores need to introduce new offers on products and shipping in order to attract more people. Target Corp. (NYSE:TGT) announced in this month that it will provide free shipment services up till 20^th December.

Deisha Barnett, a spokesperson for Wal-Mart Stores Inc. (NYSE:WMT), said that several store managers have changed prices to match those of online stores already because the aim of the company is to serve the customers, provide ease for them.

Wal-Mart Stores Inc. (NYSE:WMT) has been trying hard to reclaim its position as the low-price leader. This year, the company launched an online tool – Savings Catcher. This tool compares the prices of products to those of a few of its store competitors. If this tool finds a product at a lower price somewhere, then the difference is refunded to the customer as store credit. The Savings Catcher does everything for the customer.

Wal-Mart Stores Inc. (NYSE:WMT) informed the investors that since the national launch of Savings Catcher in August, the company has had over 5 million users of this tool. About 3% of receipts are now being submitted through this application. Wal-Mart Stores Inc. (NYSE:WMT) has matched prices to those of its competitors in the past as well. In 2011, the company ensured that workers carried the ads of the competition at register.