Walmart Raising Some Online Prices to Drive In-Store Traffic

Wal-Mart Stores Inc (NYSE:WMT) is hoping to drive customers to its stores by increasing online prices.

Walmart Raising Some Online Prices to Drive In-Store Traffic

Recent reports claim that Walmart is increasing the prices for some of its online goods. The company then offers a cheaper price for the item if customers choose to pick it up at one of the retail company’s physical locations.

Walmart’s goal with this effort is likely to push customers into picking their goods up at its stores. By doing so, it increases the chance that these customers will buy other goods when they come in to pick up their online order.

Walmart has confirmed that some prices online are more expensive than in store, but it says that other prices are cheaper. The company also notes that it continues to price its online goods at comparable rates to those on other retail websites, reports Retail Dive.

Another possible reason for the price increase has to do with Walmart’s gross margin rate. This has been decreasing lately as the chain continues to cut prices and focus on online sales. The increase in foot traffic may help keep this from dropping more.

Walmart has also been pushing its online sales recently to better compete with Amazon.com, Inc. (NASDAQ:AMZN). One concern is quickly delivering goods to customers. Amazon has its own one-hour delivery program in select cities. WMT is trying to outdo this with in-store pickup, same-day delivery and putting groceries in customers’ fridges for them. It also has some employees delivering orders on their way home from work.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2017/11/walmart-is-raising-online-prices/.

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