A new study suggests that Target is delivering on the second part of its "Expect More. Pay Less" slogan.
The Business Journal reports that the Minneapolis retailer is narrowing the price gap against rival Wal-Mart. It quotes a report in the trade journal Chain Store Age that cuts the numbers several ways. It found that prices at Walmart stores are, on average, 2.4 percent less those at Target, but Target's prices were actually 2.7 percent lower when the 5 percent discount for REDcard credit and debit card holders is calculated. The findings are based on a Kantar Retail semi-annual pricing study.
The study revealed that the margin is narrow, with only 19 percent of items costing more than 10 percent more at Target. Target was within pennies of Walmart on food, a significant finding in the growing grocery segment.
The study also showed that Target stores narrow the price gap by slicing prices on promotions rather than with an every day strategy.