Wal-Mart enters turf war with Amazon for online sales

November 24, 2009

(ChattahBox) — There’s a simmering turf war developing between Wal-Mart and Amazon, according to a front-page story in today’s New York Times. That is in someways a surprising clash, given  Amazon operates only online and Wal-Mart is rooted in its big-box retail stores but is now stepping up its online offerings, and thereby competing for overlapping customers. So a holiday season price war between the two retailers began last month in a highly public back-and-forth over which company had the lowest prices on the most anticipated new books and DVDs this fall. But that was just the first salvo and now the competition has spread to toys, mobile phones, and other consumer electronics. Amazon, though smaller than Wal-Mart overall is a worthy adversary. The Seattle based company dominates the growing online retail market, and is expanding while others contract. Amazon’s sales last quarter went up 24 percent, even as regular retail dropped 4 percent overall. As Wal-Mart is stepping up its online offerings, Amazon has found itself on the defensive though.

“[T]he price-sniping by Wal-Mart is part of a greater strategic plan,” says Fiona Dias of GSI Commerce. “They are just not going to cede their business to Amazon.” In a tough economic climate for retailers, who are facing a predicted 1 percent decline in sales this holiday season, Wal-Mart is trying to aggressively stake out its online position—and look to the future of retailing.

“If you are Wal-Mart, you want to have your proportional piece of this change in consumer behavior,” says ChannelAdvisor’s Scott Wingo.


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  1. About wal-mart, amazon price war, walmart, online holiday | Find me About on November 26th, 2009 1:14 am

    […] (ChattahBox) — There’s a simmering turf war developing between Wal-Mart and Amazon, according to a front-page story in today’s New York Times. That is in someways a surprising clash, given Amazon operates only online and Wal-Mart is rooted in its …Read Original Story: Wal-Mart enters turf war with Amazon for online sales – ChattahBox […]

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