
(Photo by Marcus Ingram/Getty Images for Sports Illustrated)
Walmart is waging an all-out war against Amazon this holiday season.
The traditional retailer is turning the tables against the online retailer by setting store prices that are lower than online prices for some items.
That may sound irrational to some business strategists. Online prices are supposed to be lower than store prices, as online sales have lower overhead.
But it isn't that irrational if it allows Walmart to capitalize on one of its advantages. Points of sale, which allow customers to enjoy the experience of shopping and immediate merchandise pick up; and save Walmart the shipping and handling costs.
That's particularly important on holidays like Black Friday when shoppers have more time at their disposal and have made it a habit to visit retailers searching for bargains.
Still, using its stores to beat Amazon won’t be that easy. The on-line retailer is a technology company that has developed AI software that monitors who sells what, where, and at what price, adjusting its own prices accordingly to get the last click.
To be fair, Walmart has been turning into a technology company, too. It has its own army of AI software developers to figure out what the competition offers and at what prices, adjusting its product offerings accordingly.
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(Photo by Marcus Ingram/Getty Images for Sports Illustrated)
Walmart is waging an all-out war against Amazon this holiday season.
The traditional retailer is turning the tables against the online retailer by setting store prices that are lower than online prices for some items.
That may sound irrational to some business strategists. Online prices are supposed to be lower than store prices, as online sales have lower overhead.
But it isn't that irrational if it allows Walmart to capitalize on one of its advantages. Points of sale, which allow customers to enjoy the experience of shopping and immediate merchandise pick up; and save Walmart the shipping and handling costs.
That's particularly important on holidays like Black Friday when shoppers have more time at their disposal and have made it a habit to visit retailers searching for bargains.
Still, using its stores to beat Amazon won’t be that easy. The on-line retailer is a technology company that has developed AI software that monitors who sells what, where, and at what price, adjusting its own prices accordingly to get the last click.
To be fair, Walmart has been turning into a technology company, too. It has its own army of AI software developers to figure out what the competition offers and at what prices, adjusting its product offerings accordingly.
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