Wal-Mart Stores Inc. has launched a full-fledged price war with Amazon.com and the results are sending shockwaves throughout the book industry.

 

Walmart got things started last week, offering $10 prices on such upcoming hardcover releases as  Stephen King's "Under the Dome quot; and John Grisham's "Ford County," a cut of more than 60 percent from the regular cost. Wal-Mart also offers free shipping.

 

Amazon.com , the largest online bookseller, matched the $10 price, prompting Wal-Mart to lower it’s price to $9. The next day Amazon.com also lowered the price of the books to $9. Hardcover releases, which typically have a suggested retail price of at least $25, are generally sold to merchants with a wholesale price of a 47 percent discount. This means the two competitors are likely selling the titles at a loss.

 

The price war has taken a toll on large chain bookstores Borders Books Inc and Barnes And Nobles. News of the price drops saw shares of Borders fall 13 cents, or 4.2 percent, to $2.96. Barnes & Nobles shares declined $1.04, or 5 percent, to $19.79. Only Walmart reported an increase in its stock prices.

 

There's no telling how long this week's price cuts will last, but experts said the two online giants could continue to expand the duel. Walmart is notorious for lower prices on some items in order to cripple some of its competitors. This could be a sign of the company trying to expand that ideology.

 

So where does that leave the consumer? The Christmas shopping season is fast approaching and the timing of the price wars is no coincidence. The retailers know that in this time of economic uncertainty, the consumer will focus heavily on sales. This Christmas could be a bonanza for the frugal shopper.