Slatwall

Slatwall is a panel-style wall covering of horizontal "slats" separated by 1 inch grooves 4 to 6 inches apart. Wire, plastic or acrylic shelving in a wide variety of styles can be inserted into the grooves and hung at any height without the use of tools or other hardware.

Pegboard

Pegboard consists of a thin particle-board panel with small holes drilled into it, equally-spaced and arranged into horizontal and vertical lines. Wire and plastic hooks for hanging products can be inserted into the pegboard holes without the further use of tools or hardware.

Considerations

While slatwall is more expensive, it's arrives pre-finished and at professional, display-ready quality. Pegboard is generally less expensive but is unfinished, easily damaged and presents a less professional image.

Costs

Pricing for slatwall varies from $2 to $4.50 per square foot. Pegboard prices range from $1 to 2.25 per square foot.

Installation

Slatwall is mounted directly onto studs or braces with wood screws and is designed to smoothly connect with neighboring panels. Pegboard is also mounted onto studs, braces or other "framing" materials in order to leave a small gap between the pegboard and the surface behind it.

Source:

NASFM.org: Association of Retail Environments