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Wal-Mart starts a holiday price war
It's cutting prices on products to boost seasonal sales. But investors worry the cost will be too high.

The holiday season is supposed to be for giving.
Wal-Mart Stores' (WMT) gift to its competitors: a price war.
The retailing colossus plans to cut prices aggressively this holiday season in a bid to lure in shoppers looking for bargains, officials said at a two-day analyst meeting held near Wal-Mart's Bentonville, Ark., headquarters.
Under the plan, which started Wednesday, each week will bring cuts for a specific group of products.
The goal is to boost market share for the company as the economy struggles to shed a recession.
"We will not be beaten on price," said Vice Chairman Eduardo Castro-Wright, leader of Wal-Mart's U.S. business.
But Wal-Mart shares and shares of rivals fell on the news.
The company expects a "tough" holiday season, with customers delaying purchases until later in the season, John Fleming, chief merchandising officer for the company's U.S. business, told Reuters.
Toys R Us said Wal-Mart's price moves are not new. "Every holiday season, there is this level of price competition -- we expect it and we prepare for it," a Toys R Us spokesman told The Wall Street Journal.
Wal-Mart has already rolled out aggressive price cuts ahead of the 2009 holiday season. It is offering more than 100 toys for $10 each.
It plans a big push in entertainment products this season, Fleming said. Which means Best Buy (BBY) may feel the heat.
Wal-Mart has already started a price war over books, cutting prices at Walmart.com on highly anticipated hardcover books by 60% or more to $10.
When rival Amazon.com (AMZN) matched the prices, Wal-Mart lowered its prices to $9. When Target (TGT) entered the fray with $8.99 prices, Wal-Mart went down another penny to $8.98.
If the moves sound great for consumers, investors weren't thrilled and pushed Wal-Mart shares down 2.1% to $50.63.
The stock is down 9.7% this year and is the second-worst performer among the 30 stocks in the Dow Jones Industrial Average ($INDU).
Amazon.com was off 1.6% to $93.43. (The company reports third-quarter results after Thursday's market close.) Target fell 2.1% to $48.90.
Book sellers Barnes & Noble (BKS) and Borders (BGP) dropped 2.7% to $18.40 and 6.1% to $2.60, respectively.
People like you, For We the People, should stay out of conversations such as this one. Why. You are one sided and only believe what you "believe" you know to be fact, and that isn't saying much. You should get more political education so you don't make yourself look so bad in here.
As far as Wal-Mart. They are out there just as any business is. They will either survive or fail. It all comes down on how the company is run. People will still flock to Wal-Mart and Sam's Club no matter what anyone says in here. It's no different than going to Home Depot to purchase a Moen faucet. Ever wonder why Home Depot's Moen faucets come in a different color box than what a plumber can get from a supplier? That's because of the quality of the product. After all, Moen wouldn't want all those plumbers bad mouthing them. That's why when you purchase from a supplier the faucets are in a White Box. Check it out the next time you are in the store. What these type of stores have done is put a much cheaper product on their shelves that are defective. Believe what you want, but it's no different than buying a shirt from Wal-Mart and buying a Ralph Lauren Polo shirt from Macy's. So, what it comes down to is, if you want "Cheap" go to those discount stores. If not, stop going.
Walmart is a dead man walking. Their business model is already failing. Walmart needs to lower prices by developing an internet business; reduce real estate and other store expenses by shipping more and thereby require smaller and fewer stores while increasing volume.
The future of Walmart is Kmart.
Both groups are in favor of big money corporations, outsourcing jobs and getting rid of small businesses and the middle class. All for the bottom line at the expense of our way of life.
It is interesting to read through the message chain and see ALL the other issues people seem to relate to Wal*Mart.
I have been, designing, costing, sourcing (in China) and selling goods for over 15 years, NOT just to Wal*Mart but ALL retail outlets.
I hate Wal*Mart, because they are big and so powerful. But ready for this... they are our MOST profitable account. We make more $ from Wal*Mart then any other retailer.
Wal*Mart will sell an item for 5%-10% profit if they feel the need and ask nothing from us, except make the item better... cheaper. That is the hard part, it is up to US how to make it cheaper. Easy way out... send it to China... or make the item crap. But in the end all they ask is make it better.
Target will sell the same item at the same price and comes back to us and asks for "advertising $" a retailers way of asking the manufacture for kick backs, so Target can retail that same item for only 10%... why not the manufacture just gave them 100k in "advertising dollars", and guess what ALL retailers do that except Wal*Mart and the dollar stores.
By the way item MAY not be manufactured in the USA now... but they are all designed & engineered here. Yes we shipped the $5.00 jobs to China and added 3 $50,000 jobs to our company.
ASK PEOPLE IN THE BIZ... THERE ARE A LOT OF US OUT THERE.
Okay, wally world is definitely not the lowest prices on big ticket items all the time, sometimes they are, and the fact that they are willing to price match makes them a viable option to at least research, which any consumer worth their salt or who values their money should, nay, MUST do with big ticket items anyways.
That said, smaller ticket household type items can be found at pretty good prices there, not always the best but darn near most of the time unless you'd like to go to costco and get bulk which is the best way to get the cheapest price per unit, oz, liter, whatever.
Finally, yes, they've slashed prices but again, a consumer should do some research before purchasing, especially with the internet and high speed connections these days, you can at least compare a couple stores before walking out the door, so is a book that's a penny cheaper at wally world going to convince me to drive across town, heck no, but it's a nice gesture to the consumer even if it is backhanded. Is a flat panel TV that's $100 cheaper at wally world than costco going to get me to drive across town, probably...
StockScouter data provided by Gradient Analytics, Inc.
Quotes supplied by Interactive Data.
MSN Money's editorial goal is to provide a forum for personal finance and investment ideas. Our articles, columns, message board posts and other features should not be construed as investment advice, nor does their appearance imply an endorsement by Microsoft of any specific security or trading strategy. An investor's best course of action must be based on individual circumstances.
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