Wal-Mart and Amazon in Book Price War

Mega retailer Wal-Mart and online shopping giant Amazon.com are locked in a price war, sending the prices  of some new, highly-anticipated hardcover titles down to $9 from both retailers and causing book retailers across the country to have to reevaluate their prices. Wal-Mart initiated the war, cutting prices yesterday to $10, a move that was followed by Amazon and has resulted in what amounts to a retail brawl.

Analysts watching the situation have suggested that Wal-Mart’s latest round of price cuts are positioning the company to become as massive of a force in the world of online retail as they are in the brick-and-mortar retail world. While Wal-Mart is by far the largest retailer in the United States, analysts feel that Wal-Mart is beginning to focus on its online retail capabilities.

Wal-Mart has been introducing a series of new features to its website reminiscent of features in other popular retail websites like Amazon.com, such as announcing in August that it would allow third-party retailers to sell nearly 1 million items through its Walmart.com website. The retail giant followed this move with announcements regarding a budget generic prescription service, the fact that it would launch its own cell phone plan, and the introduction of health and beauty products to its website.

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