NEW YORK — The “Every Day Low Price” king is trying to shake up the world of pricing once again.
Walmart told The Associated Press that it has rolled out an online tool that compares its prices on 80,000 food and household products — from canned beans to dishwashing soap — with those of its competitors. If a lower price is found elsewhere, the discounter will refund the difference to shoppers in the form of a store credit.
The world’s largest retailer began offering the feature, called “Savings Catcher,” on its website late last month in seven big markets that include Dallas, San Diego and Atlanta. The tool compares advertised prices at retailers with physical stores, and not at online rivals.
The move by Walmart could not only change the way people shop, but also how other retailers price their merchandise. After all, Americans already increasingly are searching for the lowest prices on their tablets and smartphones while in checkout aisles.
Behemoths like Target and Best Buy have started offering to match the lower prices of rivals — but only if shoppers do the research on their own. The idea behind Walmart’s online feature, on the other hand, is to do the legwork for customers.
Ken Perkins, president of retail research firm Retail Metrics LLC, said the move will “put pressure on everyone else to follow suit.” But he and other industry watchers voiced concerns that the tool doesn’t compare prices of online retailers.
After sending queries to some of Walmart’s competitors, it wasn’t clear on Friday afternoon whether they planned to follow the move.
Meanwhile, Walmart said it wants to see how competitors and customers respond to the program, but it doesn’t have any plans to add online stores to the test.
Duncan Mac Naughton, chief merchandising and marketing officer for Walmart Store Inc.’s U.S. discount division told The Associated Press that shoppers are looking for “technological answers to saving them money and time.”
Walmart built its business on offering lowest prices on staples such as milk, bread and laundry detergent. But Walmart’s “every day low price” model is under attack from dollar stores and grocery stores like Kroger in addition to the Amazons of the world. On top of that, the retailer’s primarily lower-income customers continue to cut back on spending during the economic recovery.