WMT has decided to leave no stone unturned in its urge to make most out of this holiday season. The company was experiencing a fairly tough time since the past couple of years has finally made its way to glory. The company reported of experiencing, a comparatively better sales record and after this victory. The company plans to take this victory a notch higher and thus expects that the upcoming season would be highly competitive where they would resume their prior position back.
The company in order to sabotage its competitors decided to have a price matching policy with whom they consider as competition. Through this price matching, buyers will clearly opt for the one which is more budget friendly. This offer as claimed by WalMart official is not something new but they have been practicing this act at their various departmental stores earlier as well.
This price matching has given birth to more and more competition. This offer has certainly generated a lot of user interest in the mechanism. The only issue with such offers is that the room for margins becomes extremely less. In a situation where already prices are being reduced to a great extent, price matching can further cut on profit.
Those stores who cater to the elite class encountered a boost in their sales but those which actually deal with people who watch their budget have experienced a decline. Thus companies understand that the decline in sale is more related. A new trend was observed in terms of shopping where home décor, accessories, clothing etc. was far more sought after among consumers particularly the affluent class whereas sales of grocery and everyday needs were fairly flat.
WMT believes that they experienced mixed sales trajectory “Overall, I would characterize the quarter’s sales performance as mixed,” they further added, as we enter the fourth quarter, we see both opportunities and challenges ahead of us.”
The company understands that the competition is massive now. It is not limited to a particular store across the street but now things are far more magnified in nature. With the advent and popularity of the internet, the entire world is now a competitor. Thus companies not only need to be far sighted now but also focused on their game.