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Walmart Is Raising Prices Online To Increase In-Store Traffic (theverge.com)
An anonymous reader quotes a report from The Verge: Walmart is taking a bit of an nontraditional approach to boost sales ahead of Black Friday and Cyber Monday shopping events by raising prices for products sold online and discounting those same items in physical retail stores. According to The Wall Street Journal, the big-box store has quietly raised prices for household and food items such as toothbrushes, macaroni and cheese, and dog food on its website while the prices in stores remained the same. If there are price discrepancies between online and in-store purchases, Walmart will now highlight this on the product's web listing to encourage customers to buy them from their local stores. It's all part of an effort to increase foot traffic as Walmart continues to compete with Amazon just about everywhere else.
With the new pricing strategy, a twin-pack of Betty Crocker Hamburger Helper costs $3.30 on Walmart.com, but goes as low as $2.50 if purchased at a store in Illinois. The aim is to also help reduce processing costs and increase online sales margins, since driving customers to stores means less shipping costs for the retailer. Shipping one box of instant macaroni and cheese from Chicago to Atlanta could cost Walmart as much as $10, reports the WSJ.
With the new pricing strategy, a twin-pack of Betty Crocker Hamburger Helper costs $3.30 on Walmart.com, but goes as low as $2.50 if purchased at a store in Illinois. The aim is to also help reduce processing costs and increase online sales margins, since driving customers to stores means less shipping costs for the retailer. Shipping one box of instant macaroni and cheese from Chicago to Atlanta could cost Walmart as much as $10, reports the WSJ.
Letâ(TM)s say Jimmy is shopping on Walmartâ(TM)s website. Heâ(TM)s shopping there because he doesnâ(TM)t want to go to a brink-n-mortar. He sees the price difference and thinks to himself âoeDang! Itâ(TM)s almost $1.00 cheaper in the store. I wonder what Amazonâ(TM)s price would be? Wow. Amazon is .50 cents cheaper online, and plus I wonâ(TM)t have to go to the store. Iâ(TM)ll just order from Amazon.â
Walmart is absolutely clueless.
load "$",8,1
They should consider volume discounts on purchase of multiples or not bother offering low margin products in single quantities online. It seems a bit unreasonable to expect free shipping on a box of macaroni and cheese across the country.
Jesus was a compassionate social conservative who called individuals to sin no more.
From the summary:
"Shipping one box of instant macaroni and cheese from Chicago to Atlanta could cost Walmart as much as $10, reports the WSJ."
I know that nowadays billing proper shipping costs to the consumer is such a radical idea, but maybe they should try THAT instead of rising products prices. Would make a whole lot more sense.
Make sure you list both prices online then, with a clear explanation - Otherwise, I'll just think that Walmart just sucks in terms of prices, compared to other stores in that timeframe.
I already shop at Aldi for most food items, and use Slickdeals and other comparisson shopping places for most non-perishables. Walmart has long since lost its image as a 'low prices' store - and now sits in my mind as the same as the old department stores as a place I only go for specials and items I can't find elsewhere.
I do understand they completely squeeze their business partners for increasing margins every financial period they can - but from what I'm seeing, those same vendors have learned to just make crappier stuff for Walmart, while pushing better actual values onto other marketplaces.
Ryan Fenton
I don't feel safe shopping at Walmart, which is why I don't shop at Walmart
And the thing that stops a person from just going to another website with a likely-lower price is...?
I even RTFA (okay, skimmed) to see if there was an answer to this question. I honestly don't know why someone would feel compelled to actually drive to a store (Wal-mart or otherwise) to purchase an item that they already intended to purchase online, especially since it's likely there are other retailers who will have lower prices after Wal-mart increases theirs. (The referenced WSJ article is paywalled so I can't look there for answers, either.)
And from TFA:
...so charge $10 to ship it? I realize things like Amazon Prime have made a lot of people expect cheap or free shipping, but that's an aberration, not a requirement, of online shopping.
I buy $500 TVs, $300 DVD players, $199 PS4 consoles, etc. For $0.49 I'm perfectly happy in Vons.
Delivery isn't free. If it's "free", then you're being overcharged if you go and buy it in person.
Yes, retail infrastructure costs money to maintain, but so does shipping/warehousing/IT infrastructure.
... there were another online store where I could get my shopping done.
Shipping ain't free.
Walmart's website is one big clusterfuck of design. They need to learn from other sites how to do it. Lowe's online site is a great example. Not only can I tell if an item is available at my local store, they actually give me a map of the local store and tell me exactly where to find what I'm looking for. And every time I go to the site it knows which local store I live near.
I think the reason Walmart can't do that is because they're constantly moving stuff around in their stores. In fact, if it's been a few weeks since my last visit, I have trouble finding what I knew was there before.
Shopping at walmart.com is a headache. Searching for an item is just about impossible. Once you find it you still don't know if it's available locally or online because the site forgets where you're shopping!
Every year we hear the story of the Black Friday Brawl. Every year, it's in the same GD place.
Walmart.
"Free can of Pepper Spray for the first 150 shoppers ! "
I think I'll pass on the in store only sales and just shop somewhere else.
Shipping one box of instant macaroni and cheese from Chicago to Atlanta could cost Walmart as much as $10, reports the WSJ.
From what I've read, Walmart has one of the most efficient shipping infrastructures, so I don't think they'd be that dumb. They would probably ship from someplace local/closer to Atlanta and, therefore, much less expensively.
It must have been something you assimilated. . . .
> ... Let's say Jimmy is shopping on Walmart's website. He's shopping there because he doesn't want to go to a brink-n-mortar. He sees the price difference and thinks to himself "Dang! It's almost $1.00 cheaper in the store. I wonder what Amazon's price would be? Wow. Amazon is .50 cents cheaper online, and plus I won't have to go to the store. I'll just order from Amazon" Walmart is absolutely clueless ...
Look at Sears Roebuck, J.C. Penny, Macy's, Sak's 5th Avenue
Look at KMart, Target, Walmart
Look at Toy'R'Us, Payless, Sport's Authority
All these retail giants are product of the 1930's, 40's, 50's, 60's, 70's, 80's, and they peaked during the 1980's
After that, they cruised for a while, and then decline started
The relatively minor declined became more and more severe, and by the 2010's it has become disastrous
Chains after chains folded - from shoe stores (Payless) to sport-oriented stores, to general merchanizing chains, their suffering becoming terminal, by-the-day
Now watch the same time frame --- what happened since the 1980's?
Computer, and then, online (with BBS fidonet and gomen arpanet), and then the birth of Internet
People were starting to commute with each others, long distance, exchanging ideas and insights, and do it on-the-cheap
These two events crossed paths during the 1990's, that's when people started selling stuffs online
And now the online selling scene has become a deluge --- while the brick and mortar people are still fucking clueless as before
The Nov 11 online selling bonanza in China, that very day, on ONE platform (Alibaba) alone, the amount was over 25 beeelion dollars (yes, American dollars) - and that figure does not include the online sales on other platforms in China (Tencent and others)
Translation: 25 billion US Dollars of sales *NOT* going to brick and mortar stores
In America, we have Amazon (and other minor platform), and the sales figure is at least as much as that of China's
But still, brick and mortar store owners are still acting like fucking dinosaurs, and like the dinosaurs, many of them won't survive
https://www.retaildive.com/news/6-retailers-that-never-survived-bankruptcy-and-what-led-to-their-demises/424562/
Comment removed based on user account deletion
A friend ran into that the other day and bought an item she thought was from Walmart, but was actually from a 3rd party vendor. I am unsure if it showed up at her door or was picked up in-store, but she didn't find out until she tried to return it instore that it was 3rd party, and then was told she had to email the 3rd party about any return issues rather than Walmart.
Having looked on Walmart.com in the past and run across items like that, which on first glance appear to be from Walmart, until you skim pretty much the whole page, I can understand how more sheep-like consumers have that problem.
Amazon and Newegg both do a better job on this (Amazon more than Newegg in my experience.) But this seems to be a disturbing trend as more of these 800 lb gorillas try to push their way into being the central hub of internet sales, without taking responsible disclosure and clear separation of 1st and 3rd party items seriously, while then blaming it on the customer when they can't tell the difference. Buyer beware is true, but so is 'don't pull the rug out under your customers.' Changing from a 1st party only site to supporting 3rd party vendors without clearly dilineating the difference is just asking for customer dissatisfaction.
Every single time i go walmart it's a painful experience. The last time I was there, i brought 4 items up to the self check out and, literally, just as I got there, some 300# woman with a mullet waddles off a stool, flips a switch turning off all the self checkouts. not a word, just a glance, then she spun around and limped off towards customer service.
I left the items on the deactivated conveyor belt and left. Sadly, experiences like this have happened multiple times at various locations
i will absolutely positively pay more to avoid Walmart.
Not that long ago it was cheaper online than in the store. I have four Walmarts near me. Unfortunately, they do not stock the same items. I went online several times to see which store had the item I wanted. When I got to the store, it was more expensive for me to pull it from the shelf and buy it. The last time it happened I stood there in front of the item, got out my phone and bought it from Amazon. They pissed me off enough I could wait the two days for the package to arrive.
Cousin Eddie: I don't know why they call this stuff hamburger helper. It does just fine by itself, huh? I like it better than tuna helper myself, don't you, Clark?
Clark: You're the gourmet around here, Eddie.
You have just entered The Walmart Zone.
For the first time in my life, I went into a Walmart last January. Everything that I had ever heard about it... was true. Never again.
However, I don't order online either. I like to buy Clothes that fit, (30" Waist, 34" Inseam.), and when I buy Electronics or Camera Gear, I like to check it out immediately to ensure that it's not dead out of the box. I test drive Cars thoroughly before buying them, and I pay Cash, always. Credit Cards are for those that lack Self Control. I've switched to Alvarez Eyeglasses, (I worked with Luis Alvarez...), so the times of constant fussing to get a pair of regular Glasses to fit properly are over. I can't imagine trusting Online Sellers here, no matter how good the price.
My next big purchase coming up is a Pentax KP. I've read just about everything Online about them. Since all of the local Camera Stores have folded, I'll have to take a day to drive over to SF and put one through its paces at the only Pentax Dealer in the Bay Area. And to think, for three decades I was an Olympus Guy...
But I've handled the recent Olympus Digitals, and they just don't feel right in my hands. (Canons felt downright wrong.)
I do my own shopping for Food; I eat in a restaurant maybe once a year. I actually like going down the aisles, checking out what's on sale, and comparing Ingredient lists. Hamburger Helper, no matter the price, is no bargain. Pasta is around $1 a pound, which turns into ~2.5 pounds cooked, which is more than enough. The rest of the Helper ingredients are the usual collection of Petrochemical wastes. (When something is called "Cheesy Beef Pasta", two ingredients sure not to be included are either Cheese or Beef.)
You don't even save any time. Boil up some water, toss it and a generous handful of Rotini into a wide-mouth Thermos, and it will be Al Dente by the time the meat with some diced onion is browned. Mix in a can of tomato puree and a careless selection of spices from the Spice rack, and ten minutes later mix the Pasta in, and you're done. Same time, better ingredients, less money.
Hmmmm... I'm getting hungry...
Think of all the free publicity Walmart gets when a dozen dime-store duchesses in animal skin prints roll around in the Toy Department throwing punches over the last Tickle Me Roy Boy doll at the Alabama superstore. You simply cannot buy that kind of social media presence!
And how better to remind "Sales Associates" who's boss than to rip them away from their families on Thanksgiving? They should be thankful for their minimum-wage jobs and quit whining about that family values nonsense.
Work with me here, people. Get those assless chaps out of the closet, wiggle into that skin-tight XXXXXL spandex shirt that says "My Warm-up Is Your Workout", and head down to Wally World for a Black Friday - Cyber Monday Shop-a-thon!
Only one week left! It's almost time for really serious bargain hounds to grab the sleeping bags and get in line.
I've calculated my velocity with such exquisite precision that I have no idea where I am.
Hmmm...well, you'd better not stay in your house then either, because plenty of people get shot in their homes, too. Probably a lot more than get shot in a Walmart.
and anything that either keeps me from spending an entire afternoon on public transport or taking my life in my hands trying to drive to the store is worth a pretty substantial price premium. The fact that online pricing is usually cheaper is just a bonus.
The exception is groceries and things like clothing where I might want to check things like fit or color or "feel" before buying. Or things I absolutely need now, like tools or parts or supplies to finish some kind of project that's blocking up my garage/driveway/workbench.
How could you even suggest such a thing!
http://omgwhut.com/the-amazing-people-of-walmart/25/
Only two things are infinite, the universe and human stupidity, and I'm not sure about the former.
Before I go walking from store to store to find exactly what I'm looking for sometimes it's just easier to click the buy button when you're already mid-research. My smallest online transaction has been $0.60 and it somehow included shipping. My smallest item purchased was a single physical screw, because stuff buying a 10 pack and having 9 laying around.
And so... what's keeping me from ordering from a different online service? It sounds like Walmart thinks their only competition is themselves. Let's disabuse them of that.
Oliver's law of assumed responsibility: If you're seen fixing it, you will be blamed for breaking it.
I don't know why they call that stuff hamburger helper. It does just fine by itself. I like it better than tuna helper myself.
sure, it might cost them $10, but what about the extra cost for us, the customer, for going to a store?
fuel isn't really cheap these days, and my time is limited and thus expensive as well.
they will have to increase their prices way more to make it worth while to go to the store and by that point, you will surely find cheaper alternative online shops.
On a long enough timeline, the survival rate for everyone drops to zero.
I don't do Walmart. Or Facebook. I'll do Amazon and eBay all day long however.
If Walmart doesn't want people using their online site, why do they have one?
"I'm a humble person really,
I'm actually much greater than I think I am"
Target has much better BI than wal-mart, it's their entire niche business strategy.
Wal-mart is clueless they've stopped innovating and have increased profits by fucking everyone as hard as they can, customers, suppliers, and of course workers. Then they pat themselves on the back.
You wanna see clueless, go do a glassdoor on walmart labs.
Well, the beef would come from you, it's just the helper. Also the Cheesy Beef Pasta does have Ricotta Cheese, Blue Cheese and Cheddar Cheese, dried as an ingredient along with other cheese enzymes. So for the $2.50 you get the Pasta, the cheese, and the spices. No mixing, it's easy to do, etc.