Wal-Mart Cuts Prices on Electronics
New York City, Wal-Mart Stores stepped up its discounting Friday in advance of the holiday season, announcing deep price cuts on almost 100 electronics that focused on high-definition TVs, cell phones and digital cameras, according to the Associated Press. The news came a day after the world’s largest retailer announced disappointing October sales and a lackluster November outlook.
The discounts are effective through Dec. 31.
In a release Thursday, Wal-Mart said it planned to “reinforce Wal-Mart’s price leadership position” in such areas as toys and electronics. The discounts on electronics follow Wal-Mart’s move in mid-October to cut prices on more than 100 holiday toys, which the company said is already resulting in a “significant lift in unit volume.”
CVS Placed on CreditWatch
New York City, Standard Poor’s Ratings Services said it placed its long-term ratings, including the “BBB+” long-term corporate credit rating, on CVS on CreditWatch with positive implications. The “A-2” short-term rating on the company was affirmed, though this rating was not placed on CreditWatch.
The CreditWatch action follows the chain drug retailer’s announcement that it has entered into a definitive agreement to merge with Caremark Rx. Under the terms of the agreement, Caremark shareholders will receive 1.67 shares of CVS for each share of Caremark. Pro forma for the transaction, CVS’ shareholders will own 54% of the combined company and Caremark’s shareholders will own 46%.
The new company will be called CVS/Caremark Corp. The transaction is subject to stockholder approvals from both companies as well as regulatory approval, and is expected to close in six to 12 months.
Internet to Influence 25% of Holiday Purchases
Washington, D.C., The Internet will play a larger role than ever in holiday shopping this year, according to a new survey conducted for the National Retail Federation (NRF) by BIGresearch. Shoppers, who are expected to spend $791.10 each this year on holiday merchandise, said they will use the Internet for an average of one-fourth (28.9%) of their shopping.
Though nearly half (47.1%) of consumers plan to make at least one holiday purchase on line this year, up from 36.0% three years ago, many will also use the Internet to browse before heading to stores to buy. According to the survey, most consumers (88.7%) regularly or occasionally examine products on the Internet before buying in a store. When it comes to researching merchandise, electronics are the most popular searches. More than one-third of on-line shoppers (39.3%) said they have browsed for electronics on line before buying in a store within the last 90 days.