Walmart was duped into selling Playstation 4’s for only $90 as a result of a price matching promotion that they offer in which they will sell products at the same price as their competitors. Analyst Kenneth Griffin says the Playstation 4 (PS4) typically sells for four times that amount, which makes the situation unfortunate for Walmart.
This dupe comes about as a result of Walmart announcing earlier in the year that they are willing to match prices offered by certain websites including Amazon. Amazon offers a feature in which users can crease selling accounts and develop sales pages that look authentic and may be capable of tricking Walmart into selling products for these prices.
Walmart has been under increased competition as a result of these online retailers who have lower cost structures without having to maintain a large retail business with rent, overhead, and employee salaries to meet. Users will often try out products in stores and then search for them online in order to obtain the cheapest prices possible for these products. Walmart has began matching these lower prices but it is likely that they will commit towards reviewing these sites in more detail to make sure that the prices that they are honoring are real prices. Walmart only honors these lower prices for products that are in store, identical in nature, and ready for sale.
Still, all of this increased competition likely bodes well for customers who may result in lower products. Walmart’s commitment to low prices may lead to lower profits as well.