Also from Steve Montgomery...
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November 21, 2012
Recent reports suggest that Target might have a slight edge over Walmart heading into the holiday season. And thanks to an analysis by Bloomberg Industries, Target gets a win with the lowest price on Thanksgiving dinner. How important will price be to the success of retailers such as Target and Walmart this holiday season? [more...]
Price in relationship to quality is always important. As the article indicates, there can be a wide range in prices for similar items. I do wonder if when they were doing price comparison at Sam's, they used the case price (doubtful) or the individual can (mathematically accurate, but not valid when you have to buy a case).
The reason Target and Walmart got into food was to drive trip frequency so it is not surprising that they both place a lot of emphasis on price. Having read the details of different price comparison methods, what they are doing is creating the perception more than the reality when you leave perishables, etc. from shopping lists.
Not sure if Target has closed the gap in price comparison, but my question would be how many people shop both? I would expect that there is some crossover, but wonder if it is a significant percentage.