Wal-Mart's new online tool compares competitors prices

NEW YORK - The "Every Day Low Price" king is trying to shake up the world of pricing once again.

Wal-Mart told the Associated Press that it has rolled out an online tool that allows shoppers to compare its prices on 80,000 food and household products to those of its competitors. The world's largest retailer began offering the feature that's called "Savings Catcher" on its website last month in seven big markets that include Dallas, San Diego and Atlanta.

The move by Wal-Mart, which has a long history of undercutting competitors, could change the way people shop and how other retailers price their merchandise. After all, Americans already increasingly are searching for the lowest prices on their tablets and smartphones while in checkout aisles.

Shoppers do this so often that big retailers including behemoths such as Target and Best Buy have started offering to match the lower prices of rivals - but only if shoppers do the research on their own. The idea behind Wal-Mart's online feature, on the other hand, is to do the legwork for customers.

Duncan MacNaughton, chief merchandising and marketing officer for Wal-Mart Store Inc.'s U.S. discount division, told the Associated Press in an exclusive interview that shoppers are looking for "technological answers to saving them money and time."

Wal-Mart, which declined to comment on when the program would be rolled out nationwide, said it's hoping the online tool will build more confidence among Wal-Mart shoppers that it has the best price whenever they shop in stores.

The company built its business on offering the lowest prices on staples such as milk, bread and laundry detergent. But Wal-Mart's "every day low price" model is under attack from online king Amazon and other competitors that sometimes offer items cheaper. On top of that, the retailer's primarily lower-income customers continue to cut back on spending during the economic recovery.

Wal-Mart said the idea for Savings Catcher was born last year during a focus group. The other cities are Charlotte, N.C.; Huntsville, Ala.; Minneapolis; and Lexington, Ky.

Here's how the tool works: A customer has to set up an account on Wal-Mart.com, then logs in and types in the number on the receipt. Shoppers need to register the number within seven days of purchase. Savings Catcher compares prices of every item on the receipt to a database of advertised prices of competitors. The database is provided by an undisclosed third party that analyzes retail ads.

The prices at Wal-Mart stores are matched to competitive stores based on geography, but not online retailers.