Walmart's low price promise in focus after Amazon's warning

Aug 2 (Reuters) - Walmart's "Everyday Low Price" promise will be put to the test when it reports quarterly results, after rival Amazon.com's warning that customers had turned bargain hunters, pressuring the online shopping behemoth to forecast a weak current quarter.

Major retailers including Target (TGT.N), opens new tab, sector bellwether Walmart (WMT.N), opens new tab and Kroger (KR.N), opens new tab have been pushing to keep prices on essentials low as many Americans shun big-ticket spending and turn to discount shopping in the face of sticky inflation.

While this has strained margins across the industry, Walmart's scale gives it more negotiating power with vendors. Its low prices could end up attracting shoppers who shun more high-priced shops, some analysts said.

"(Amazon's result) has sent a chill through the wider retail sector. That said, for a value-focused retailer like Walmart, performance may be better as its offers are more centered around essential products," Neil Saunders, managing director of research firm GlobalData said.

Wall Street expects Walmart, due to report second-quarter results on Aug. 15, to post a 4% rise in quarterly revenue, accord...
[Short citation of 8% of the original article]