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Wal-Mart Jump-Starts the Holiday Shopping Season

Price War Starts Early This Year

By Truman Lewis
ConsumerAffairs.com

November 4, 2006

Wal-Mart • General Complaints • Auto Service & Lube • Black Friday • Customer Service • Dangerous Products, Conditions • Grocery/SuperCenters • Lawn & Garden • Monogram Credit Card Bank • Pet Department • Pharmacy • Photos • Pricing Disputes, Errors • Returns • Sporting Goods • Tire Centers • Vision Center • WalMart.com --- • Employees Complaints --- News • Wal-Mart Settles Massachusetts Workers' Suit • Wal-Mart Employees Going Checkless • Wal-Mart Dominates Christmas Shopping • California Consumers to Get $3 Refunds from Wal-Mart • Wal-Mart Selling Bassinets Blamed for Killing Two Babies • Wal-Mart Gaining On Grocery Chains • Black Friday Ads Target Wal-Mart • Wal-Mart Era Is Over, Wall Street Journal Declares • Consumers Respond to Toxic Wal-Mart Pet Toy Stories • Wal-Mart Expands $4 Generic Program • Lab Tests Find Lead, Other Toxins in Pet Toys Sold at Wal-Mart • Wal-Mart Plans Its Own Debit Card • Wal-Mart To Open In-Store Health Clinics • Wal-Mart Gives Up Bank Plans • Congressman Challenges Wal-Mart Banking Plans • Wal-Mart Expands Generic Drug Plan • Christmas Returns to Wal-Mart • Wal-Mart Jump-Starts the Holiday Shopping Season • Wal-Mart Cuts Generic Rx Prices To $4 In Florida • Wal-Mart Ending Its Layaway Program • FDIC Puts Retailers' Banking Plans on Hold • Wal-Mart/Sam's Club Settle with Connecticut on Pricing Violations • Congress May End Wal-Mart's Banking Dreams • Arizona Charges Wal-Mart, AutoZone with Consumer Fraud • Michigan Fines Wal-Mart $1.5 Million for Item Pricing Violations • Opposition Grows as FDIC Examines Wal-Mart Banking Bid • Wal-Mart's Banking Plans Draw Critics • Michigan Challenges Wal-Mart on Item Pricing • Wal-Mart May Stock "Emergency" Contraceptives • Black Friday Gives Wal-Mart a Black Eye • Connecticut Probes Wal-Mart Pricing • Wal-Mart Pushing Extended Warranties on Electronics • Bankers Oppose Wal-Mart's Entry into Banking • Wal-Mart Target Of Union-Led Boycott • Wal-Mart to Pay $14.5 Million for California Gun Law Violations • Wal-Mart Target Of Union-Led Boycott • Wal-Mart Tries to Buff Its Image

The holiday shopping season traditionally starts on "Black Friday," the day after Thanksgiving. But coming off a sales slump, Wal-Mart is cranking the calendar forward a few weeks, cutting prices 15 to 30 percent on the most popular electronics.

The retail giant stumbled badly this year with its attempt to move upscale, emphasizing high-end merchandise at the expense of its traditional "falling prices" theme. Now, it's reverting to its tried-and-true formula with a vengeance.

Wal-Mart's move puts pressure on Target, Best Buy and Circuit City and puts consumers in the unusual position of being able to shop early while enjoying the discounts that don't usually show up til later in the holiday shopping season.

Wal-Mart is not only returning to its roots, it's bringing back the yellow "smiley face" that was until recently a mainstay of its advertising.

Its competitors tried to put on a happy face. A Best Buy spokesman shrugged off Wal-Mart's moves, saying consumers want not just low prices but also expert installation and reliable service.

Target congratulated itself for providing "consistent merchandising excitement and compelling value."

"Wal-Mart recognizes that Mom wants to get the perfect gift for the best value," said Gary Severson, senior vice president and general merchandise manager Electronics, Wal-Mart Stores. "We've lowered prices so that families can afford to get and give more of the best brands and technology in electronics this season."

Top television prices rolled back include the Panasonic 42" HD plasma TV (was $1,794/now $1,294) and the Polaroid 37" LCD HDTV (now $1,297/will be $997) and the RCA 32" LCD HDTV (was $997/now $847), the company said.

At Wal-Mart, Severson said, shoppers can save nearly $400.00 when they purchase the Polaroid 37" LCD HDTV ($997.00), Panasonic mini DV camcorder ($268.76), C875 Kodak digital camera ($249.64), Lexmark z600 printer ($134.44) and Net 10 1600 prepaid phone ($39.98).

According to the Consumer Electronics Association, electronics will account for more than one-quarter of all holiday gifts this year. Electronics items make popular presents and are also much more profitable than many of the bulkier items that line Wal-Mart's shelves.

The holiday shopping season is no holiday for the nation's retailers. Holiday sales represent nearly half of annual revenue for many stores and retailers are wary of cutting prices any sooner than they have to.

By jumping the gun on the holidays, Wal-Mart not only hopes to regain the growth that has eluded it lately but also to put a big lump of coal in its competitors' stockings.

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