Target Canada: The low-price leader?

While Target continues to work on improvements to its results in Canada, it was interesting to read about a market-basket analysis showing sharper pricing vs. Walmart than most people might realize. Here’s a recent comment from RetailWire on the subject:

Short-term, it’s an important tactic for Target to advertise its price advantage vs. Walmart, especially when using the REDCard. But this works only as long as Walmart chooses not to respond. History suggests that Walmart will not sit still for very long being beaten on price by somebody else.

Long-term, Target has a branding story to tell that helps differentiate itself from Walmart. It has the same challenge in the U.S. right now, and the new CEO recognizes that less focus on food and consumables will shift the spotlight toward Target’s core strengths. But before any of these steps can be put in place — short-term or long-term — the execution of in-stock rates must continue to improve.


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