Toys have always been a huge seller during the holidays mostly because no matter what state the economy is in, parents always end up buying their children toys. Between Wal-Mart, Target, Amazon, and Toy 'R' Us there is big competition this season in the retailing of toys.
When the Wall Street Journal spoke to Wal-Mart about it's price disadvantage, a week later they came out with a new price list where several of the top toys were shown as research.
There is huge competition, there is no doubt. Being as confident as retailers are about this years holiday season, they are doing everything possible to beat their competitors to get the biggest profit possible.
The good thing about this competition is that prices get lowered each time and it turns out to be a a whole lot better for not only the consumer, but the businesses as well because people will end up buying more.
For more information:
http://online.wsj.com/article/SB10001424052748704405704575596920008896164.html?KEYWORDS=Wal-Mart+Fires+Shot+in+Toy+Battle
-Jacky Meltzer
Business 1.0 Blog setup by Colin Dame, Tania Dabdoub, Leah Stoltz, Bria Gutierrez, and Jacky Meltzer. Critique of the the latest news in the world of retail.
The article was very interesting, you forgot to mention some of the things Target and Walmart are doing in order to compete against each other. The fact that both stores are offering price adjustments if you bring in a lower advertised price of the same product is fascinating and truly displays the fierce competition. The focus is on discounts, how much the consumer can save, and both retailers are well aware of such as they duke it out for the customer's dollar.
ReplyDelete--Leah Stoltz
I think this fierce price competition may also serve as an incentive for consumers to come into stores like Wal-Mart and Target, thus increasing the traffic in these stores. The increased number of consumers visiting these stores looking for the best prices while they shop for the holidays will allow these stores to sell more products. A mom may go into Wal-Mart to buy her son a toy that is priced low as a Christmas gift, but then may see other products priced low that she would like to buy as gifts for other people.
ReplyDelete