Price war, no deals barred
Sat 07 Nov 2009
Flat-panel televisions cover the wall in the electronics department of the Wal-Mart in Rosemead. The discount giant is even more aggressive for the holidays, promising new deals every week until Christmas.
With another tough holiday season looming, Wal-Mart Stores Inc. is ratcheting up a price war that could be good for shoppers but has competitors fearing the worst.
The world's largest retailer has for years snatched sales from department stores, discounters, supermarkets, electronics sellers and mom-and-pop shops. Its intensive markdowns helped drive chains such as Circuit City and Mervyns out of business over the last year.
Now Wal-Mart is using its enormous clout to wrest the advantage during what is expected to be another weak Christmas season.
The chain's power to undercut rivals has allowed it to slash prices on toys, books and other holiday items in recent weeks. The latest deals include a $20 Thanksgiving dinner for eight, an HP notebook computer for $298 (normally $448) and a Sharp 52-inch flat-panel television for $898 (normally $1,548).
"They put a stake in the ground and said, 'We will not be beat this holiday season,' " said Joe Feldman, a senior retail analyst at Telsey Advisory Group. "Without question, everyone has to look out for Wal-Mart."
The retailer's sheer size means that "anything it does has a greater impact," said Todd Slater, an analyst at Lazard Capital Markets. "Wal-Mart's pricing strategy will allow consumers to save millions while at the same time keep pressure on its competitors."
The world's largest retailer has for years snatched sales from department stores, discounters, supermarkets, electronics sellers and mom-and-pop shops. Its intensive markdowns helped drive chains such as Circuit City and Mervyns out of business over the last year.
Now Wal-Mart is using its enormous clout to wrest the advantage during what is expected to be another weak Christmas season.
The chain's power to undercut rivals has allowed it to slash prices on toys, books and other holiday items in recent weeks. The latest deals include a $20 Thanksgiving dinner for eight, an HP notebook computer for $298 (normally $448) and a Sharp 52-inch flat-panel television for $898 (normally $1,548).
"They put a stake in the ground and said, 'We will not be beat this holiday season,' " said Joe Feldman, a senior retail analyst at Telsey Advisory Group. "Without question, everyone has to look out for Wal-Mart."
The retailer's sheer size means that "anything it does has a greater impact," said Todd Slater, an analyst at Lazard Capital Markets. "Wal-Mart's pricing strategy will allow consumers to save millions while at the same time keep pressure on its competitors."
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