You normally expect retailers to cut prices online because more compared to their retail stores because that’s just the way this industry operates now but Walmart is now taking a different approach. In a bid to increase in-store traffic ahead of the Black Friday and Cyber Monday shopping events, Walmart is actually raising prices online to get more customers to visit and purchase whatever they need at its physical stores.
The Wall Street Journal reports that Walmart has quietly raised prices for food and household items like macaroni and cheese, toothbrushes, and dog food on its website without increasing their prices at its stores.
It’s not being shy about this either. The company will now mark price discrepancies on items online and in-store on the website listing to encourage customers to visit their local Walmart stores.
The report also mentions that Walmart’s aim with this move is to reduce processing costs and increase margins for online sales. That’s because if more customers drive to its stores to buy products, Walmart has to pay less shipping costs to get those same products out to them.
It’s a bid on Walmart’s part to increase overall revenues. Whether or not this strategy will pay dividends, in the long run, remains to be seen.
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