Walmart has nixed an idea to offer its own version of rival Amazon’s Prime Day because it already has more discounted item sales than usual, according to a Thursday (July 7) CNBC report.
The retail giant, which has seen fierce competition from the eCommerce company in recent years, has usually thrown such an event at the same time as Prime Day. But now, as bright yellow “clearance” signs have appeared all over in its stores in recent weeks, the retailer is taking a different approach.
The website has also been touting thousands of Rollbacks, which refers to a 90-day price cut on various items at Walmart. Recently, those have been cropping up on bicycles, air fryers and other items.
Walmart’s discounting strategy shows the steps retailers have taken to sell the extra merchandise that has accumulated in store warehouses, even if it comes at the cost of profits. Other companies like Target and Gap have also been dealing with higher-than-usual inventory levels.
CNBC noted that many retailers have attributed the problem to several factors, including ordering too much product, receiving seasonal goods too late and pandemic-era items becoming less popular.
PYMNTS wrote that Walmart has recently rolled out a back-to-school promotion to rival Target’s. In a company blog post, Walmart said it is providing shoppers with a six-point checklist and a wide variety of products, including school supplies like backpacks and pencils, as well as deals on electronics, apparel, footwear and more.
“I know first-hand that back-to-school shopping should be fun and affordable, and Walmart is here to make sure our customers won’t have to choose between what they want and what they need,” said Julie Barber, senior vice president, Hardlines, Walmart U.S.
Walmart’s program will come with three components also included in Target’s announcement, including a basket of popular items for $1 or less, a special pitch to college students and dorm room needs, and a way to cater to teachers’ needs.