Comment by randycupertino

9 hours ago

I feel like they artificially made their prices super low for the last couple years and intentionally operated at a loss as a business tactic to force out competition and kill off local grocery stores. There were instances of their prices being lower than Walmart or other budget stores. The avocados were $0.25 each and carrots were half price of ones in Safeway, even ground beef was weirdly cheap. One time as a comparison I put the same items in my cart for Amazon fresh and Walmart and it was $21 at Amazon fresh and $36 at Walmart. WAY cheaper than Instacart too.

> operated at a loss as a business tactic to force out competition and kill off local grocery stores

Wouldn't surprise me. I know a guy who invented a device for truckers that became ubiquitous in truck stops across the US. This would've been like 2014.

He refused to sell on Amazon, so Amazon duped his product and sold it at something crazy, like half price, until he agreed to list (at which point they dropped their competing product)

> I feel like they artificially made their prices super low for the last couple years and intentionally operated at a loss as a business tactic to force out competition

iirc that's exactly what Amazon did to destroy diapers.com over a decade ago

  • Amazon did not destroy diapers.com.

    Diapers.com aka Quidsi was already operating at a loss when it was acquired by Amazon. It's whole business model was using VC-funding to offer products below sustainable costs with the goal of eventually jacking up prices once they drove out smaller/local competitors. Amazon used its own business model against it by dropping prices even lower, knowing that the VC investors couldn't afford it.

    Walmart passed on buying Quidsi when Walmart was thinking about launching its own e-commerce platform because the business model was unsustainable. Walmart decided they would rather spend several hundred millions building out their own platform then to buy an existing website with millions of customers.

This is basically the playbook of every "disruptive technology" startup or FAANG initiative of a similar stripe - set prices incredibly low to bleed out competition and gain market share, then raise them once you are in the dominant market position.

Walmart isn't a budget grocery store, though. Its prices are higher than actual grocery stores (like Safeway.) Also, everyone is WAY cheaper than Instacart.

  • >Walmart isn't a budget grocery store,

    The answer to this is complex, it has any number of products that are cheaper than products of similar quality from any other store. Places like Safeway/Aldi typically beat on price on very generic items that may or may not have similar quality.

    The biggest thing to watch for at Walmart is price discrimination dependent on location. Back in the days I used to shop with them (read made less money) picking a store in a poorer neighborhood could save $10 to $30 dollars on the same car of items.

    • I found Lowes (hardware) to be one of the worst about this. I lived in an area with 4 Lowes, and never shopped at my local one because of how much more expensive everything was, and never clearance. I'm not talking a couple dollars, in some cases 4x the price of one just 15 minutes away.

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  • Not in the areas of California I frequent. Walmart is usually the cheapest around here; heck, even Target beats Safeway on some items. On the other hand, Walmart is also usually the worst at stock rotation.