Let the Price Wars Begin
The battle for holiday market share has started already. Wal-Mart announced today it is cutting prices on 100 popular electronic items, including TVs, laptops, and cameras. Other big-box competitors are expected to follow suit. Let the price war begin! For Wal-Mart, accelerating the discount-push that usually starts the day after Thanksgiving signals that it intends to compete primarily on price this holiday season. Price cuts announced today include $500 off a Panasonic 42-inch HD plasma television (now $1,294) and $300 off a 37-inch Polaroid LCD television (now $997). Although Wal-Mart, lest we forget, is America’s largest retailer of fine jewelry too, the push on electronics shows where the retailer believes the money is this holiday season. And the traffic: the retailer surely hopes that these marquee items will draw early shoppers who may decide to do all of the rest of their shopping in Wal-Mart too. The early push also echoes moves by many online retailers to start holiday marketing efforts well before Black Friday. So what is Wal-Mart pushing in jewelry this year? Prices have been cut on some popular sizes of diamond stud earrings set in 14k white gold: 1 carat total weight studs (I, I1 with an IGI report) are now $1,388. The Wal-Mart.com homepage features a classic solitaire engagement ring with a link to the bridal department. The jewelry page showcases a two-carat total weight Journey necklace for $4,500 and some square mirror-cut quartz gemstone cocktail rings for $149. A “Design Your Own” section features promise and family rings with engraving and customizable stones. The retailer is also featuring a two-carat “Lucia” diamond ring with a pave setting for $8,000. Not exactly a Tiffany Lucida (the description says princess but the photo says emerald cut) but you can’t say they aren’t trying to upgrade that image.