According to a latest research, Wal-Mart, which is based on the concept of Everyday Low Prices, is actually expensive compared to Target. Both the retail chains were compared for their prices and Target was found to have lower rates for many products. The report was prepared by Bloomberg Industries, which observed the prices of 150 products.
Wal-Mart claims to offer a large variety of products for the lowest rates. It has always portrayed itself as the most reasonable chain of stores in terms of daily-use items compared to other players in the market.
“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,” Deisha Galberth Barnett, a spokeswoman for Walmart, said in her statement, as reported on inquisitr.com.
Target’s offers, along with effectively carried out advertising, have made it the leader in the price war that has long been going on between retail chains.
“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,” Natalie Berg, an analyst at research firm Planet Retail, said.
As the products in these retail stores are somewhat undifferentiated, their prices matter a lot to buyers. The value proposition for the potential customer is therefore very important to both the sides. Retailers often compete on prices to take a lead in the intense competition. For this purpose, they introduce offers on a regular basis so that people are attracted to their stores instead of the competitors’. Every chain has developed its own image and people visit them according to their overall image as a retailer.
