Who’s the “low price leader”: Walmart or Amazon?

From a recent RetailWire panel discussion: It’s one thing to chip away at Walmart’s price leadership item-by-item, it’s another thing entirely to make low prices central to your company’s operating culture. Here’s my opinion:

Amazon has not made price leadership central to its brand position in the same way as Walmart over the years. Its brand is more defined by assortment and convenience, although it is very competitive with Walmart on similar merchandise. Nevertheless, Walmart continues to have the scale to be perceived as the low-price leader…in large part because it has the advantage of vast numbers of commodities and food being sold in brick & mortar locations at very competitive prices, in categories that Amazon barely pursues. Somebody can always beat Walmart on the price of an individual item — and frequently does — but they are still tough to beat in terms of the core premise of the business.


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