Recession Wars: Target Edges Ahead of Walmart in Pricing Battles
According to uber reliable source Bloomberg, Target is starting to edge ahead of big box competitor Walmart. I think it’s because they put in those groceries stores within their stores. After all, people have to eat. Research from Bloomberg Industries reports that this month, Target had lower prices than Wal-Mart for the first time since October. The Target led is by widest margin since the monthly study began two years ago. The study examined the gap in average price across a basket of 150 like items at stores within five miles of each other. The recession still holds most US retailers in a tight gridlock, each store barely eking out profits in a tough economy. According to Bloomberg. “the discounters are fighting for U.S. customers who are still dealing with high unemployment and slow wage growth.” Big box stores are not only battling each other, but online retailers as well. Consumers who shop at discount chains “are trying to stretch their budgetary dollars as much as possible,”notes Jennifer Bartashus, an analyst for Bloomberg Industries in Skillman, New Jersey. “They will be driven to whatever store offers the better value.” An interesting conclusion, but one that seems to be true. Price seems to be king for most consumers right now. That’s how stores like Target and Walmart survive, despite controversies and labor complaints that have dogged both retailers.