Walmart promises holiday price matching

Walmart announced a new strategy that it hopes will pull shoppers in early by giving them a big incentive: a guarantee that they'll get the lowest price no matter when they buy during the holiday season.

The discounter said Monday that shoppers who buy something at a Walmart store between Nov. 1 and Dec. 25 but then find the identical product elsewhere for less can get a gift card in the amount of the difference. Normally, the company matches prices with its ad-match policy only when the purchase is made at the same time a competitor's ad is running.

To qualify, shoppers need to bring in the original Walmart receipt and the local competitor's print ad. Gift cards will not be given out after Dec. 25.

"Walmart is easing shopping stress this Christmas by allowing customers to shop when and how they want, all while guaranteeing low prices through the entire holiday season," said Duncan MacNaughton, chief merchandising officer at Walmart's U.S. division, in a statement.

The holiday price guarantee comes as the world's largest retailer aims to solidify its position as the low-price leader and reverse nine straight quarters of declines in revenue at stores opened at least a year in its U.S. namesake business.

Even items placed on layaway will be eligible for the company's "Christmas Price Guarantee" program. Walmart is also hoping to tap into another stream of revenue -- by giving shoppers the price difference in the gift cards, it's hoping customers will come back and spend more than the value of the card.

The move raises the competitive stakes for the 2011 holiday season, which accounts for as much as 40 percent of retailers' annual revenue. With the job market still weak and the stock market in turmoil, shoppers are focusing on grabbing the lowest price and are using their smartphones to check rivals' prices in the store aisles and walking away if they're not getting the best deal.

Heading into the holiday season, a growing number of stores, including Staples Inc. and Bed Bath & Beyond Inc., are even matching prices with online-only merchants like Amazon.com to convert browsers into buyers.

Walmart's price matching for the holidays still excludes Internet retailers, but clearly the latest announcement underscores the discounter's need to hammer its low-price message even more in a bid to bring back customers it had lost.

Analysts said Walmart's U.S. business has been in a slump because of mistakes it made on price and selection. The company is reversing that weak trend and has seen three straight months of revenue gains, starting in July, as it finishes up restoring thousands of products it culled during an overzealous bid to de-clutter its stores.