Wal-Mart is getting the jump on the Christmas shopping competition early this year, the Wall Street Journal reports. It’s no surprise that Wal-Mart makes up over one quarter of toy sales and they want to keep it that way. They plan on luring customers to their store by cutting the price of ten familiar toys and selling them for ten dollars. I can just see the advertisement now, “Ten for Ten Toys”.
This, of course, is causing problems for just about, if not all, toy retailers who have a very tough time competing with Wal-Mart. Really, who doesn’t have a tough time competing with Wal-Mart these days. Some of the big names having to compete with Wal-Mart are Toys R Us and Target. Online retailers are also having a problem, even if they can match the price, because of the necessary shipping cost.
Wal-Mart isn’t cutting the prices of all the stock like a dollar store, but it’s going to get people into the stores and they’re going to buy normal stuff with the “while I’m here” attitude. With the economy the way it is, people are going to be looking to save as much as they can and Wal-Mart is counting on that.
It’s unfortunate that so many people need to rely on Wal-Mart to get by, otherwise they may not have the strangle hold they do on the competition. Family Guy did a funny episode about Wal-Mart titled “Hell Comes to Quahog“. A giant store comes to Quahog and all the local businesses go under because of it. The store was called Superstore USA but the writers are definitely poking fun at Wal-Mart.
If that isn’t enough animated fun for you, and if you can stomach the show, South Park did a very funny episode about Wal-Mart called “Something Wall-Mart This Way Comes“. The store was called Wall-Mart, note the extra “L”. Wall-Mart came to town and wrecked the economy because everyone wanted to shop there instead for the low prices.
People just have a hard time paying more to shop somewhere else to support the other businesses. Any retailer matching Wal-Mart’s prices are most likely selling at a loss to them. Either way Wal-Mart wins. Heads I win, Tails you lose.