In a news article today focusing on Wal-mart's approach to dealing with new rivals in the brick and mortar low-cost grocery market, the WSJ shed some light on Wal-mart's overall approach and policy to adapting to competition in all evolving marketplaces, including Amazon. And I quote
"Lidl’s arrival and Aldi’s growth come at an already fraught time for the U.S. grocery industry. Food-price deflation has eaten into grocers’ earnings for the past 17 months as of April, the longest stretch of year-over-year declines in retail food prices since 1956.
Though that trend could be easing, economists say, Wal-Mart is contributing to it by making its own price cuts to shore up its low-cost image. Its executives have told suppliers that its prices should be 15% lower than competitors’ 80% of the time, as it fights online retailer Amazon.com Inc. and other discounters."
(You can read the full article here
https://www.wsj.com/articles/why-wal-mart-is-worried-about-a-german-grocer-1494927001)