Wal-Mart, Amazon.com trade price cuts

Wal-Mart Stores Inc and Amazon.com are in a full-fledged price war.

Los Angeles: An online book special offered by Wal-Mart Stores Inc. is turning into a full-fledged price war with Amazon.com.

Wal-Mart got things started Thursday, offering $10 prices on such upcoming hardcover releases as Sarah Palin`s "Going Rogue" and John Grisham`s "Ford County," a cut of 60 percent or more from the regular cost. Wal-Mart will also offer free shipping. Amazon.com, the largest online bookseller, matched the $10 price, prompting Wal-Mart to take its offer to $9. By Friday morning, Amazon.com also had priced the books at $9. The price cuts come at a time when Seattle-based Amazon.com and other sellers have been charging just $9.99 for ebooks, a price that publishers worry is unrealistically low. The reductions also make it increasingly hard for independent sellers, which can`t afford such large discounts, to compete for the most popular books. The price war also is forboding news to the large chain bookstores Borders Group Inc. and Barnes & Noble Inc., which have been squeezed by Amazon.com`s discounting and a decline in their music business. "At Walmart.com, we remain committed to providing our customers with the lowest prices available online. That commitment extends to the nation`s best-selling books, especially during an increasingly challenging year for many of our customers," Raul Vazquez, Walmart.com`s CEO, said in a statement. "Our newest offering — the Top 10 pre-selling books at just $10, with free home delivery — is a true reflection of this commitment to better help our customers shop and save money online, just in time for the approaching holiday season." In a new program called "America`s Reading List," Bentonville, Ark.-based Wal-Mart also will offer 50 percent off or more on 200 current best-sellers, including Dan Brown`s "The Lost Symbol" and Kathryn Stockett`s "The Help." Booksellers have fought hard to bring in customers for blockbuster releases such as Brown`s "Lost Symbol" and the "Harry Potter" stories, offering reductions of 50 percent of higher. But Wal-Mart`s announcement suggests a broad, sustained race for customers at prices few can afford to offer. Bureau Report