Black Friday 2013: Wal-Mart is Gunning for Amazon's Holiday Sales | Investor Beat - 11/29/13

TL;DR

Black Friday has become a crucial time for retailers, with Walmart competing to sell as many items as possible and offering gift cards to incentivize return visits. Best Buy and other retailers must also compete heavily on pricing. Online retailers like Amazon are a big threat, but traditional retailers are getting more competitive with online strategies, such as price matching and web rooming.

Transcript

shouldn't you be out elbowing someone in the face for a TV right about now well since you're here investor beat starts now thanks for watching I'm Allison Southwick and today is a special Black Friday Edition of investor beat and we will not be undersold joining me now in studio is Jason Moser montle fool analyst and Diana Yokum consumer expert her... Read More

Key Insights

• 🥺 Black Friday has become a major battleground for retailers, with Walmart leading the way in offering promotions and incentives to attract shoppers.
• ❓ Retailers like Best Buy must compete heavily on pricing during the holiday season to stay competitive.
• 💗 Online shopping only accounts for about 10% of holiday sales, but it is growing rapidly. Traditional retailers are trying to compete with Amazon by offering price matching policies and combining online and in-store experiences.

Questions & Answers

Q: How did Walmart perform on Black Friday last year?

Walmart sold 5,000 items per second on Black Friday last year, showing the immense popularity and demand for their promotions.

Q: What efforts are retailers making to attract shoppers during the shortened holiday shopping season?

Retailers are starting their Black Friday promotions earlier and extending them beyond Black Friday. They are also offering free cash incentives, such as gift cards, to encourage repeat visits and purchases.

Q: Does every retailer need to have a successful Black Friday?

While large retailers like Walmart may be able to endure a mediocre season, smaller retailers like Best Buy need to compete heavily to stay afloat. Investors are looking for Best Buy to offer competitive pricing during the holiday season.

Q: How are traditional brick and mortar retailers competing with online giant Amazon?

Traditional retailers are getting more competitive online by offering price matching policies and creating unique experiences for customers. Web rooming, where customers research prices online and then go to the store for immediate purchase, is becoming popular.

Summary & Key Takeaways

• Walmart sold 5,000 items per second on Black Friday last year and is offering promotions and free cash incentives this year to attract shoppers during the shortened holiday shopping season.

• Other retailers like Best Buy are also offering competitive pricing and unique experiences like Vine videos to attract customers.

• Online shopping accounts for only about 10% of holiday sales, but it is growing rapidly. Traditional retailers are trying to compete with Amazon by offering price matching policies and combining online and in-store experiences.