Sunday, November 6, 2011

Wal-Mart to leak its own Black Friday deals

According to a CNNMoney article, Wal-Mart is giving shoppers an early look at its Black Friday deals for the first time this year; giving them a head start on competitors. Wal-Mart will offer those customers who sign up at or an early preview of its Black Friday deals on an assortment of electronics, toys, household items and clothing. This is a clever move to figure out who the retail giant's core customers are and to leap ahead of the competing stores like Target, Costco, and Dollar General. By knowing the prices of Black Friday deals first from Wal-Mart, some consumers might not even look anywhere else to buy. The retailer also said it would roll out "Super Saturday" sales at stores nationwide. On a specific Saturday in November, Wal-Mart will be offering their biggest sales of the year, except for one day: Black Friday. To further lure shoppers this season, the retailer announced a "Holiday Price Guarantee" last week. Wal-Mart will offer shoppers a refund on the difference if they find the same product they purchased at a Wal-Mart store advertised for a lower price elsewhere. Wal-Mart is doing all of this to increase demand for the holidays. Sales imply changes in price, which causes a movement along a demand curve therefore increasing the quantity demanded. Not only are they creating an increase in demand, they are creating incentive for customers to spend their Black Friday and shop for the holidays at Wal-Mart. Along with the sales, the retailer has promised layaway on purchases over $15, free shipping on most products, no interest on Wal-Mart credit card purchases if they are paid for in full within six months, and a 10-cent discount on each gallon of gas bought at participating Murphy USA or Wal-Mart stations. Wal-Mart is putting a lot of incentives out there for customers to feel like the store with the most benefits is Wal-Mart. Consumers will obviously have to look at the trade-offs while shopping around on Black Friday, but Wal-Mart, so far, has given the most desirable prices for their customers.

- Taylor E.

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