Editor’s note: There is a very good video to watch if you click on the link below.
For the first time since October, Target gas reclaimed the title of “cheapest” from its fellow big-box retailer, Bloomberg reported, and the gap was the biggest its been in the two years the difference has been tracked.
That’s especially important in today’s economy, as cheap is exactly what consumers are looking for. High unemployment, coupled with rising gas and food prices, means customers are as cash-conscious as ever. And while retail sales finally improved in July, that was one of the first good signs for the sector in months.
Both companies have thus been trying to lure in those penny-pinching customers with discounts and slashed prices. The key to Target’s success in the pricing department came from the addition of groceries to many stores, which cut into Wal-Mart‘s advantage on food prices. The company has also added discount incentives through its REDCard.