Black Friday and Cyber Monday sales have generally been quite high online but Walmart is taking a nontraditional approach to boosting sales this holiday season. For Black Friday and Cyber Monday, according to The Wall Street Journal, the company is quietly raising prices for household and food items online, such as macaroni and cheese, dog food, and toothbrushes. If you see different prices in-store and online, it’s most likely that the company has increased the price online while keeping prices low in-store.
Walmart is working on a larger game-plan. What the retailer is trying to do here is increase foot traffic in-store so it can keep competing with the likes of Amazon. Amazon has been expanding its reach quite a bit, especially with its purchase of Whole Foods. Both Amazon and Walmart have been working on bettering their shopping services and experiences over the past year.
For example, you’ll notice a twin-pack of Betty Crocker Hamburger Help costs $3.30 on Walmart.com, but it goes as low as $2.50 if you purchase it in store in Illinois. Walmart wants to shed processing costs and increase its sales margins. It makes sense for Walmart to drive more traffic in-store because it reduces shopping costs, for example.
Walmart advertises “always low prices” for its brand, but now it’s using a different pricing strategy online and in-store. Even though the company wants to compete, it’s also in a way false-advertising. This move will no doubt help Walmart boost its revenue, but it won’t entirely address its fight with Amazon since Amazon continues to grow at a rapid pace. Walmart is just trying to keep up with the likes of Amazon and other retailers that are doing very well. The company is now focused on increasing its overall revenue.