This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Wal-Mart Takes Fight to Amazon

Stocks in this article: WMTAMZNBKS

NEW YORK ( TheStreet) -- While visiting Wal-Mart's (WMT) Web site in search of an obscure book, I could not find it in stock nor could I order it. Instead, I was referred electronically to an unexpected source: Barnesandnoble.com.

Taking heed of the ancient proverb, "the enemy of my enemy is my friend," Wal-Mart has evidently struck up a curious yet most sensible pact with Barnes & Noble (BKS), which runs an expansive chain of physical, rather than virtual, stores.

An alliance between the two brick-and-mortar titans certainly makes sense for a variety of reasons. First, Wal-Mart and Barnes & Noble.com share the fear of having Amazon.com (AMZN) siphon off an ever-greater portion of their sales.

Nearly 45% of Amazon.com's sales come from electronics and general merchandise, rather than books and CDs. This percentage has been creeping up in the last two years and will continue to rise as a result of organic growth and Amazon.com's impending acquisition of Zappos.com, an online apparel retailer.

Second, Wal-Mart and Barnes & Noble are trying to jump-start their Web sales, even as they manage increasingly complex chains of physical stores. Both Barnes & Noble and Wal-Mart are experimenting with new techniques to drive Web-browsers into their stores, and vice versa.

For example, merchandise ordered online at Walmart.com can be picked up in or returned to one of its retail stores. This saves the consumer shipping costs and brings more traffic to the store. In an effort to reinvigorate its holiday traffic, Barnes & Noble recently entered the e-book reader fray with the Nook, an electronic book reader that came out this month. The Nook is replete with numerous features and gimmicks to lure book and CD buyers into Barnes & Noble stores.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,828.24 +0.49 0.00%
S&P 500 2,067.56 -5.27 -0.25%
NASDAQ 4,791.63 +4.3130 0.09%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs