Wal-Mart is testing a program that would match its prices to rival online retailers in a quest to win customers as the holiday shopping season looms.
While the company has matched prices of local stores, it has been caught behind many other large retailers such as Best Buy and Target.
Wal-Mart executives are reportedly discussing whether to go ahead and use the price-matching campaign nationwide, weighing the possibility that the company might end up losing more were the campaign to go ahead.
Deisha Barnett, a spokesperson for Wal-Mart, said in an interview that many Wal-Mart store managers have already been matching prices found online for customers on a case-by-case basis. She went on to say the company's focus is taking care of customers.
Online price matching has long been something that Wal-Mart has resisted, despite the success Best Buy and Target have had with it. Both Best Buy and Target have used price matching to keep customers from buying at competitors such as Amazon.
The move highlights retailers' growing concern during the holiday season, in which customers are increasingly turning to the Internet to do their shopping. The holiday season accounts for roughly 20 percent of the retail industry's sales per year, which includes online sales. Of that 20 percent, this holiday season online sales are expected to account for between 8 percent and 11 percent.
A report by the National Retail Federation suggests (subscription required) consumers plan on doing over 44 percent of their shopping online, up from 31 percent in 2009.
The fact Wal-Mart has been losing its edge in pricing makes it hard for the company to attract customers based on price alone. According to a study conducted in June by Kantar Retail, a basket of goods from Wal-Mart was only 1.2 percent cheaper than the same items at Target. This is the smallest price gap between the two stores since 2012.
In an attempt to reclaim the title as one of the nations price leaders, the company rolled out an online savings tool called Savings Catcher that compares prices of its items with competitors. If the service is able to find a lower price at a competitor, it will refund customers the difference in store credit. According to the company, since the service was launched in August more than 5 million people have started using it and around 3 percent of all receipts are submitted using the application.
