Walmart (NYSE:WMT) is ditching its old method of everyday low pricing to a fluctuating model in order to compete with Amazon's (NASDAQ:AMZN) dynamic pricing system.
On Black Friday, 16 percent of Amazon's prices fluctuated from the previous day, according to data from 360pi. Similarly, 12 percent of Walmart's online prices fluctuated that same day, AdAge reported. Then on Nov. 14, both retailers repriced about 15 percent of their products.
Not following the same trend, competitor Target only altered 5 percent or less of the products tracked in November.
The new reality is that Walmart is following Amazon's patterns for e-commerce pricing on regular shopping days, not just for big sales.
More data from 360pi reported pricing on 7,200 products over Cyber Weekend and found that Walmart repriced 9 percent of those products the weekend after Black Friday and 11 percent on Black Friday itself. Amazon changed 13 percent of those products on the weekend following and 16 percent on Black Friday.
Amazon also appeared to reduce inventory by more than 20 percent on Nov. 25, the Wednesday before Black Friday. Then on Black Friday, products spiked 5 percent higher than at the start of Nov. 20. Walmart's product count continued to steadily drop starting Nov. 20, falling to about 10 percent by midday.
Walmart's online pricing changes are part of a larger, overall strategy to focus on e-commerce and digital innovation. The push seems to be working, as close to 70 percent of Walmart's Web traffic has come from mobile devices since Thanksgiving.
-See this AdAge article
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