There are two kinds of people in the world right now: those who shop online and those who don’t. If you belong to the first category you have surely been using Amazon a lot, but if you belong to the latter group of people, Wal-Mart is some place you visit often. It is often believed that online shops slash the prices and sell at a relatively less price than the stores and showrooms. Also online hopping is convenient for those who hate going out for shopping. Wal-Mart president Greg Foran tried to step in and told store managers to update the prices matching with Amazon.
At first Walmart trying to match up Amazon is funny, but the increasing amount of showrooming happening these days can only be treated with this solution. The people who come to Wal-Mart often checks the price online and see if they get it cheaper from any other source. Everyone carries a smartphone and the price check is just a tap away, this leads to the loss of a customer for Wal-Mart. The move to match prices with the Amazon online store is thus justified.
More than 5,000 Wal-Mart stores have been instructed to follow this as a practice. The prices will be matched by store managers so that more and more customers can rely on Wal-Mart for all their purchases. If they wander off online, the chances of them returning to Wal-Mart is reduced.
The Head of U.S. Business of Wal-Mart revealed that they used to match prices with physically located stores only and it is the first time such a strategy is being followed. The move is definitely going to shake things up and bring more buyers to itself. The price-matching by buyers is definitely hurting Wal-Mart. Being a big place that has almost everything you will need, that too at really cheap prices, it is a challenge to match up with online shops.
The good thing if prices are matched is that the segment of impatient buyers can be tapped. Many people do not wait for 2 days, which is the usual time taken by Amazon for delivery. Thus, such people do not hesitate to walk into showrooms and stores for their purchases. When getting more shoppers is the goal, slashing the prices has been a known and successful solution.
With the holiday season and days like Black Friday are coming and Wal-Mart has already showcased it deals, the new price-matching strategy will be on halt for those days. Wal-Mart is offering gift cards to its customer along with purchases and not directly slashing the prices like Amazon. The products are however sold at cheap prices at both places.
Now the call is totally yours and what kind of shopper you are. If the price-matching experiment is done right and it works, showrooming will be reduced to a great amount.
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