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Best Buy Accuses Rival Retailer of Aggressive Pricing for Apple's iPhone
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The US retailer, Best Buy has complained about price-comparison adverts being run by the supermarket giant, Walmart accusing the retailer of running misleading campaigns.
Walmart launched a number of highly aggressive price based advertising campaigns which rival retailers have claimed are misleading the public, and had lead to a number of lawsuits in different US States.
Best Buy has a policy of price-matching rival retailer prices, and was forced to offer Apple's iPhone for just $150 after Walmart ran adverts offering the smartphone at the lower price.
A Best Buy spokesman told the Wall Street Journal that the company 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.
Wal-Mart said that it sold double its usual volume of iPhones during the promotion, but declined to offer specific sales numbers.
Best Buy is particularly sensitive to running loss-leading campaigns as the company is struggling financially and has undertaken a cost-cutting programme to reverse declining profits.
On the web: Wall Street Journal
Tags: [best buy] [walmart] [apple iphone] [USA]
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