Wal-Mart starts a holiday price war
It’s cutting prices on products to boost seasonal sales. But investors worry the cost will be too high.
Posted by Charley Blaine on Wednesday, October 21, 2009 8:31 PM
The holiday season is supposed to be for giving.
Wal-Mart Stores’ (WMT) gift to its competitors: a price war.
The retailing colossus plans to cut prices aggressively this holiday season in a bid to lure in shoppers looking for bargains, officials said at a two-day analyst meeting held near Wal-Mart’s Bentonville, Ark., headquarters.
Under the plan, which started Wednesday, each week will bring cuts for a specific group of products.
The goal is to boost market share for the company as the economy struggles to shed a recession.
“We will not be beaten on price,” said Vice Chairman Eduardo Castro-Wright, leader of Wal-Mart’s U.S. business.
But Wal-Mart shares and shares of rivals fell on the news.
The company expects a “tough” holiday season, with customers delaying purchases until later in the season, John Fleming, chief merchandising officer for the company’s U.S. business, told Reuters.
{ 1 trackback }