For the first time since October, 2011, Target is cheaper than Walmart.
A new study conducted by Bloomberg Industries found that Target was approximately 46 cents cheaper than Walmart for every $100 spent. The study examined 150 similar items at Walmart stores and Target stores within a five mile radius of each other.
According to Bloomberg, Target, the second-largest U.S. discounter, may have won the price war this month due to its food prices. Target ran several food deals this month along with its back-to-school promotion.
Deisha Galberth Barnett, a spokeswoman for Walmart, said that Walmart is still the price leader for every day shopping. Barnett said:
“Anytime there’s an environment with high-low retailers, pricing surveys will reflect some differences… Walmart is delivering everyday low prices — not pricing gimmicks — every day, 365 days per year, not just during a single week or during a particular season. Our customers don’t have to wait for a sale or look for an ad.”
Barnett also noted that for customers who are looking for sales and ads Walmart has a price-match guarantee. But despite it’s every-day low prices and it’s price matching promise Target still won the price war.
Natalie Berg, an analyst with London research firm Planet Retail, said:
“Wal-Mart has been rolling out 88-cent deals and very publicly communicating its ad-match campaign, so it’s a real blow that Target has managed to trump them on price… When it comes to seasonal, nobody does it better than Target. This year, they’ve gone in all guns blazing, getting more aggressive on price and creating a far more compelling in-store environment than Wal-Mart.”
Target may have won the price war this month but both stores can feel good that they beat Amazon. In June, Kantar Retail conducted a study and found that prices on average were 20% more expensive at Amazon than at Walmart. Recently, however, that number dropped to just 7%.
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