Price gap between Target, Walmart narrows

Walmart’s edible grocery basket was only 6 cents cheaper than Target’s, according to study
7/24/2013

In the U.S., Walmart's prices are on average 2.4% less than those at Target, but the gap is narrowing.

In Kantar Retail's semi-annual pricing study in June, only 19% of items at Walmart were more than 10% more expensive at Target.

And in food, Kantar's report found that Walmart’s edible grocery basket was only 6 cents cheaper than Target’s, practically eliminating its 14.1% lead in January 2013.  Target achieved this near comparability through four temporary price cuts.

“The two retailers continue to strategically diverge in how they reach relative basket comparability, with Walmart very much focused on building a strong value proposition through EDLP,” said Robin Sherk, director of retail insights for Kantar Retail and leading contributor to the study. “In contrast, Target selectively relies on temporary discounts to narrow the gap, and then offers guests ways to save even more through loyalty programs such as its REDcard,” she added.

To read more, go here.

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