On average, Walmart prices are now only 0.3% expensive than Amazon.com, Inc.(NASDAQ: AMZN) with online prices 3% higher. Compared to last year’s same period, Walmart’s wearable category prices are 6.4% lower than Amazon’s. Products include smart watches and fitness trackers. For outdoor and sports products, Walmart is now 1.3% lower compared to 3.5% higher a year prior. The company has managed to cut prices online across multiple product categories consistently rather than temporarily discounting items.
Reports show that consistently lowering prices is key to boosting sales throughout the year, especially on the busiest internet shopping day of the year, Cyber Monday. Walmart is taking this initiative to boost their e-commerce business as well as expanding their online offerings, acquiring smaller online retailers such as Jet.com, and offering two day shipping. The company has invested over $1 billion last year in order to make prices more competitive.
In the most recent quarter, online sales grew 50% that resulted in the strongest quarterly U.S. revenue growth. Walmart accounts for 3.6% of total U.S. online sales which is up from 2.8% a year ago.