Wal-Mart keeps $50 free-shipping hurdle
NEW YORK — Wal-Mart is promising that it won’t be beat on prices this holiday season. But online shoppers shouldn’t expect free shipping without restrictions.
In a sneak peak at its holiday strategies, Wal-Mart said it will offer price cuts, or what it refers to as “rollbacks,” starting Sunday on thousands of holiday products that will last at least 90 days. That’s the same time as a year ago. It also said it will offer fewer weekend-only deals.
But as competitive pressure mounts for free holiday shipping, Wal-Mart is sticking with its $50 minimum to qualify. Instead, it’s encouraging online shoppers whose orders fall below the minimum to pick up their online purchases at the store.
Last week, Best Buy, the nation’s largest consumer-electronics chain, said it will drop its $35 minimum to qualify for free shipping.
Target created big buzz during last year’s holiday-shopping season when it offered free shipping on all items. The Minneapolis-based chain said on Thursday that it will resurrect its free-shipping offer for the holidays, waiving its $25 threshold.
Amazon has set high expectations with its two-day free delivery for Amazon Prime members who pay $99 a year.
Fernando Madeira, president and CEO of Walmart.com, told reporters on a conference call on Thursday that the vast majority of customers get free shipping because their online purchases exceed the minimum or they pick up their orders at the store.
“It’s very simple for shoppers to shop,” he said.
Wal-Mart, based in Bentonville, Ark., also said that shoppers can expect more theater in the stores, such as Santas and food tastings. The retailer also unveiled a tool on its mobile app that allows shoppers to check in when they arrive at the store to pick up online orders.
Wal-Mart said it expects nearly 75 percent of traffic to its website to come from a mobile device this holiday season, up from 70 percent a year ago.
Wal-Mart faces big challenges this holiday season to pull in shoppers. The company’s shares took a big hit this month after it said that profit in 2016 could fall as much as 12 percent as spending on e-commerce operations and higher wages squeeze the bottom line. It also said that annual revenue growth in the current fiscal year will be flat. Wal-Mart previously forecast sales growth of 1 to 2 percent.
Wal-Mart’s U.S. CEO, Greg Foran, is spearheading a major overhaul of its stores. That includes basics such as making sure that stores are cleaner and well-stocked.
Wal-Mart also said it’s committed to being the low-price leader as pressure mounts from online rivals such as Amazon.
Steve Bratspies, who just stepped into his new role as chief merchandise officer for Wal-Mart’s U.S. stores, said the retailer will be ready to match prices with competitors.
“We feel good about our position,” he said. “It’s going to be a competitive season, but we are ready for it.”