Picture: http://www.entrepreneur.com/article/229898

Walmart recently announced that they will be offering their Thanksgiving deals two hours earlier this year, as well as offering deals as early as the morning of Thanksgiving for online shoppers. Because holiday sales make up approximately 40 percent of annual revenues for retailers, with an expected increase of 3.9 percent this year, it is very important that Walmart capitalize on the holiday season effectively and promote their low prices and holiday deals as early as possible. I believe it was the right decision for Walmart to begin offering holiday deals early this year because research has shown that people are beginning their holiday shopping earlier and earlier over the past few years. Walmart can also afford to reduce their prices on goods to a ridiculously low amount because they have so much supplier power. They have the ability to buy their products for less which means they can sell for less, hence causing people to prefer shopping at Walmart for low cost Christmas gifts over other retailers. Walmart most likely won’t lose revenue for lowering their prices for the holidays earlier than last year because consumers will respond to the price change and take advantage of it as soon as possible.

http://www.theglobeandmail.com/report-on-business/international-business/us-business/wal-mart-boosts-thanksgiving-deals-as-holiday-competition-heats-up/article15395647/