Doors Floors and More

Cited: StreetInsider.com

Market, market has got the market? Is it Wal-Mart or Amazon? These two retail giants have been fighting competition within their own markets for a long time. Now, everybody knows that Amazon is the place to go for books and CDs or DVDs at low prices. But this holiday season Wal-Mart wants a piece of that pie.

Big-box discount retailer Wal-Mart (NYSE: WMT) and online one-stop shop Amazon.com (NASDAQ: AMZN) are engaged in a price war that could end up as the biggest story to come out of the busiest shopping season of the year.

The battle started last month when the two retailers began a highly publicized battle to see who could have the lowest price on the newest books and DVDs coming out this fall. Now the two are going back and forth on toys, video games and mobile phones.

In perhaps the most evident sign of the two trying to keep up with each other, Wal-Mart dropped the price of its Easy Bake Oven from Hasbro (NYSE: HAS) to $17 from $28 as a part of its Black Friday deals. Wasting no time, Amazon dropped its similar $28 sticker price for the Oven to a competitive $18. Now, parents will have an option on where to get a good deal the 45-year old toy that is certain to bring brownies undercooked by a light bulb into homes across the country this holiday.

The two companies are fundamentally different and Amazon poses no real threat to Wal-Mart and its 4,000 stores. Lately the lines that divide the two are becoming blurred. Wal-Mart is expanding its online services in an effort to not cede any of its sales, which last year totaled $405 billion.

Amazon is punching back as it now offers same day shipping on its merchandise in seven cities to give the consumer some of the instant gratification that they receive from shopping in a store. Amazon is also looking to increase profit margin with expanding its white-labeling program by branding products with the company’s image. Amazon is leading the E-Commerce revolution, which currently only holds 4% of the retail market share, but is growing rapidly among those consumers who would rather point and click, rather than venture to overcrowded stores.

For those movie buffs out there who would like to get as many movies as they can . . . You can search thousands of full-length DVD quality movies, TV shows, music videos and much more online. With membership, you get unlimited 24/7 movies downloads! No time limits, no bandwidth limits no content limits! This retailer will even provide software so you can easily burn your own videos to DVD and no expensive burner is required. You can even download comedy movies online like “The Blind Side“, that became available on November 20.

Among the items being tussled over by the two companies are video games like Call of Duty: Modern Warfare 2, which Wal-Mart started selling with a $15 gift card, an offer that Amazon soon thereafter matched. Similarly both companies are now selling Xbox 360 gaming consoles for $199 with a $100 gift card, as well as the new Palm (NASDAQ: PALM) Pixi phone for $30, $175 off retail price.

As the two companies continue to grow and evolve it is clear that the competition will continue. As for this holiday season, consumers will have plenty of deals to choose from as things heat up.

Shares for Wal-Mart are trading were nearly even on November 25, up 0.31% to $55.02. Amazon is down a fraction to $132.84. There is a significant difference between the core shoppers of Amazon and Wal-Mart were competing toe-to-toe on some items. The largest percentage of Wal-Mart shoppers earn $25,000-$45,000 a year, compared to over $100,000 at Amazon.

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My Take: It is good to see a little bit of competition between competing retailers. It means that consumers are going to get lower prices and will be able to afford the things they want. Consumers like college students do not have much money will be able to afford their Greek clothing this year. It also means that they will be able to get cool tees as from as gifts for their friends or family this Christmas.

Of course, some college students will be entering fraternities or sororities and will need to get a Greek shirt for next semester and with this kind of competition they will be able to afford it. They will also be able to afford some new cool T shirts for next summer.

Don’t get me wrong, students will not be the only ones who will benefit from the price wars this holiday season. The low prices on books and DVDs are just beginning. If the competition heats up more, you will see lower prices on electronics, toys, toiletries and even some of the frivolous things like Scentsy wickless candles. I know, women are the ones that usually light all the candles in the bathroom and then soak in the tub to relax. Some men do it as well! Of course, they will need the Scentsy candle warmer for these candles, they have no wick.

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