New York – Wal-Mart and rival Target are brewing up a price war for toys, electronics and other things consumers may want for Christmas that could spell savings for shoppers but profit woes for retailers in the critical holiday quarter.
Wal-Mart Stores Inc., the world’s largest retailer, on Tuesday promised “its most aggressive pricing strategy ever” to fuel year-end business but warned that the move also could make it miss Wall Street’s expectations for fourth-quarter earnings.
That announcement came as Wal-Mart posted an 11.5 percent profit increase in the third quarter when improved merchandise mix and stricter cost controls offset weak growth in U.S. sales.
Its adversary, Target, reported a 16 percent gain in third-quarter profit, beating analyst expectations as its sales rose 11 percent.
Wal-Mart started holiday discounting in mid-October.
