New York -- With an overall branded basket 4% less expensive than Target’s, Walmart assumes the strongest overall lead in Kantar Retail’s semi-annual pricing study since the study began in 2009.
While strategic price discounts on key items continue to be a cornerstone of Target’s price competitiveness, rather than everyday low prices, Target’s overall basket has not been lower than Walmart’s since the January 2011 iteration of this study.
Kantar Retail revisited the same co-located Walmart and Target stores in Massachusetts in January 2013 to re-assess a previously established basket of national brand items including edible grocery, non-edible grocery, and health & beauty aids (HBA) items. Only identical SKUs from both retailers were assessed.
“While the two retailers’ baskets are still closely priced, Walmart has managed a consistent lead since early 2011,” comments Leon Nicholas, SVP with Kantar Retail and contributor to the study. “Its positioning is underpinned by management’s revived focus on EDLP.”
In contrast, Nicholas said, Target offers its best prices for guests willing to commit to value in the longer term by stocking-up, realizing gift card values on a return trip, and signing up for its REDcard (Target’s loyalty program).
“This price separation is a key strategic piece of Walmart’s efforts to shore up shopper traffic and drive its ‘save money’ brand proposition,” Nicholas noted.
Other highlights of the study include: