Walmart’s Next Pricing Strategy Is…Raising Select Prices Online? | Retail TouchPoints

“Providing a cheaper price or a discount for picking up an online order in-store makes sense — after all, it is cheaper for Walmart to fulfill in this way and it gets the potential benefit of incremental sales when the customer collects,” said Neil Saunders, Managing Director at GlobalData Retail, in a RetailWire discussion. “However, simply elevating online prices over store prices doesn’t seem sensible. It will create confusion and resentment, adds complexity and does not allow Walmart to compete as effectively against the might of Amazon.”

On average, Walmart’s prices were just 3% higher than Amazon’s across 13 categories, according to a 2017 Profitero pricing study of identical products. Three years ago, the same study indicated that Walmart’s pricing difference was 9% on average, clearly showing that the company has closed a gap. In 2017, Walmart products were priced lower than Amazon in beauty (the one category where it was cheaper than Amazon), but prices also came close in sports and outdoors, and baby products.

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Walmart’s Next Pricing Strategy Is…Raising Select Prices Online? – Retail TouchPoints.