The Wall Street Journal notes that several retailers including Best Buy and Toys “R” Us have complained to attorneys general in a handful of states about advertising practices of Walmart. Generally, the complaints stem from comparison ads by Walmart in which competitors assert that Walmart is using inaccurate pricing or non-equivalent items to claim that it offers the lowest pricing.


But Best Buy also alleges that Walmart was deceptive with its iPhone 5 holiday sale in which it dropped pricing to $ 127, although the article quotes $ 150 pricing.

Best Buy said it lost about $ 65,000 in profit the day Wal-Mart’s promotion first ran on Facebook, because it was compelled to match Wal-Mart’s advertised $ 150 price, even though it concluded that Wal-Mart didn’t actually have a sufficient number of iPhones available.

Walmart claims that it did have sufficient stock of the iPhone 5, quoting 98% availability at its stores carrying the device. Walmart had noted as the sale launched that it was working closely with Apple on the promotion and was securing significant numbers of iPhones, but that the sale was first-come, first-served with no rain checks offered at stores where the device was out of stock.

Best Buy had already been selling the iPhone 5 for $ 149.99 when Walmart announced its own sale, but it is unclear if Best Buy used the $ 73 difference from regular price or $ 23 difference from Best Buy’s sale price in calculating its profit loss. Assuming the latter, Best Buy would have price matched on approximately 2800 iPhone 5 sales in one day.

As if Best Buy never advertises items for sale they only have 1-2 of?

Oh please. And Best Buy decided to price match during the holidays with their new policy. No one forced them to.

Maybe if Best Buy provided superior customer service people would still buy there.

As for Toys R Us – they are a complete mess. They should worry more about their infrastructure, customer service and empowering their employees vs a sale on iPhones.

Sounds like a bunch of whining to me.

Wish amazon would put BB out of business already.

They won’t have to, BB is bleeding cash and losing customers every month now.

The founder is trying to buy the company and go private but the board thinks BB is worth a lot more, so as BB bleeds and becomes devalued, the founder is getting the company cheaper by the month, however they can not compete with Amazon and Apple directly. I have never heard one good Geek Squad story, and I warn people not to get it.

They have become a showcase for people to look and see the products and then buy them online or somewhere else cheaper.

Boo Hoo.
That could be an interesting way to attack a competing store.

Every time I’ve tried to do a price match at our local Best Buy they call local stores to see if the product is in stock.

Most times, they cannot get through to the store in question (because the other store is too busy and won’t answer their phones), or they get through, and find out that the other stores are out of stock.

Best Buy then refuses to price match because of the lack of stock in competing store. This is all stated in their price matching guarantee, but I guess not enforced everywhere.

Maybe the managers at our local Best Buys are more vigilant about not losing money on price matching. This has stopped me altogether from even trying Best Buy price matches. Which is either a win or a loss for Best Buy depending on how much they buy the product for. They either didn’t lose money, or lost a sale.

I don’t understand what is happening becausing checking stock of other stores seems to be the proper way to do it. If the other stores don’t have stock then you couldn’t get it at that price anyway, and you’re just taking advantage of best buy’s inventory and/or convenience of location to obtain your item. Doesn’t anyone else feel this makes sense?

I don’t understand what is happening becausing checking stock of other stores seems to be the proper way to do it. If the other stores don’t have stock then you couldn’t get it at that price anyway, and you’re just taking advantage of best buy’s inventory and/or convenience of location to obtain your item. Doesn’t anyone else feel this makes sense?

If the other store gives a raincheck then checking their stock is pointless.

Meh…. screw both of these places…

I buy from:

Online-
Amazon, NewEgg, Apple

Retail-
Fry’s Electronics (They will match online pricing!)

Wow….I NEVER thought I’d see the day where MR users were running to Walmart’s defense of discounting Apple products…..or maybe it’s just the fun the mob has piling on whoever the target of the day is.

When the original Walmart post came out, it was filled with smarmy remarks about Walmart customers and how they were unworthy to sell your beloved Apple products.

Now some of you are championing competition….even though Apple clearly envokes strict price controls on almost everyone who sells their equipment.

The hypocrisy of this site is a trip…..

If we want competition, then truly open it up and let resellers sell Apple gear for any price they choose. Otherwise spare me the economics lessons Best Buy needs to learn about competition.

We are suppose to care because…

Besides 68,000 is a drop in a bucket of multi-billion dollar gouging sales during the year

You’re supposed to care because years ago walmart did something similar with medicine and drove hundreds of small pharmacies out of business by selling the prescriptions at a loss. It’s the epitome of antitrust. Just because BB has money doesn’t mean they have to put up with it any more than saying someone who’s rich deserves to be robbed.