New York City -- Target Corp. is mulling a new pricing strategy amid increased competition from online and brick-and-mortar rivals, according to reports by the Associated Press and Dow Jones.
The reports said that Target has sent a letter to some of its key vendors as part of a potential new strategy to bolster its competiveness. The news comes just days before J.C. Penney is scheduled to announce a major overhaul in which pricing is likely to play a key role.
In the Associated Press report, Citi's Deborah Weinswig said she believes Target is "exercising leverage over its vendors to achieve the same pricing that smaller, online-only retailers receive. This strategy would help Target compete with retailers like Amazon on like-for-like products."