Dive Brief:
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Wal-Mart says it had blow-out activity during the period between Thanksgiving and Cyber Monday, a time the nation’s biggest retailer calls “The New Black Friday.”
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Wal-Mart says it saw the most traffic and online orders during this period than it ever has seen in the past.
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The proclamation comes as various merchants and sales trackers have been offering differing assessments for the start of the holiday buying season.
Dive Insight:
For Wal-Mart to come out so strongly during this important retail time says a number of things, including “we are champion merchandisers.” But is that really the case? The retailer is known for its door-buster approach to the early part of the holiday season. Big ticket items like TVs are marked down dramatically. But don’t be fooled. Wal-Mart builds plenty of margin into those prices because of its own massive pricing power with vendors. One should also remember who Wal-Mart’s customers are: lower income, and their buying power just may not hold up.
Still, Wal-Mart is the king of retailers by size, and should be recognized for the accomplishment. Whether the momentum will last is in question, as is whether Wal-Mart, which has had trouble keeping merchandise on shelves in the off season, will keep itself fully stocked during this time.