Target Corp.’s problem: Its customers are buying less, can’t pay off their credit cards and are switching to Wal-Mart, which trumpets low prices and cheap groceries. The Minneapolis-based retailer’s solution: Go to war.
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- Target Price War
Target Corp.’s problem: Its customers are buying less, can’t pay off their credit cards and are switching to Wal-Mart, which trumpets low prices and cheap groceries. The Minneapolis-based retailer’s solution: Go to war.
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40 Reader Comments
6:11 pm
“We like Wal-Mart,” she said, “because it’s cheaper.”
I like hearing that – since I’ve been buying Walmart stock for the last few months…
6:49 pm
This is great news. Since there are no Wal-marts in Minneapolis, Target is my most convenient retail store.
7:24 pm
Yeah, cheaper = good
always, no matter what.
Buying wal-mart stock, ewww sick,
this company is part of the reason the US is being torn apart right now.
Gross.
9:05 pm
Yeah, Wal-Mart is the problem. If only we were all paying $25 more for car seats. Wal-Mart. Right.
9:09 pm
Shopping at Walmart is an excellent way to show you don’t care about quality but do like child labor.
9:14 pm
And that you’d rather not go broke.
9:30 pm
Some people will defend anything. No matter how evil.
9:36 pm
I actually think people can keep body and soul together without supporting child labor or buying lots of cheap plastic crap, but maybe that’s just because I’m a liberal elitist and don’t live in “Real America.”
9:37 pm
Probably is.
9:41 pm
I’m just glad we survived the last 8 years so we could see how the so called “Real Americans” made our country a “Real Clusterfuck.”
9:47 pm
Ya.
10:07 pm
LOOK AT OUR FASHIONABLE EXPENSIVE SHINY RED AND WHITE BRAND ADVERTISING…oh shit…LOOK AT OUR LOW PRICES
11:08 pm
I don’t shop at Wal-Mart for the various reasons already pointed out, but really, do the folks working at Target Stores really make much more? I don’t know for sure, but I doubt it. I’ve worked retail before at Best Buy and I made just over $8 an hour. Hardly a livable wage. However, the highly publicized abuses of workers by Wal-Mart, combined with their boy’s club mentality in their management positions make it basically a no-brainer to spend my money at Target. That, and I’ve been to the Wal-Mart in Bloomington and it scared me. Worst. Store. Ever.
11:36 pm
The Wal-Mart by the Mall of America? That place is scary. I went there once because I was on the hunt for a simple but USB keyboard under $20 (this is apparently a hard feat) and they were the only place that had one. Never again.
11:38 pm
I get my ammo from the Wal-Mart by the Mall, but that’s the only thing I buy there, and I need to be stocked up for the inevitable zombie uprising.
11:44 pm
Sandburg, yeah, that one. I’m still mildly mad that I broke my 6 year ban (at the time) to buy something there, but I was in the market for an A/C and apparently Wal-Mart is the only place that sells them in August.
7:29 am
My Boycots:
- Walmart
- McDonalds, Burger King, etc fast food
- Coke & Pepsi sodas (still drink the juices once in a while)
Retail is a sad state of affairs. It is so hard to shop in the city. All of the malls and stores are in the suburbs.
I wish I could shop in Minneapolis proper and be buying expensive, high-quality Minnesota/USA stuff.
Sadly, it is so difficult to do that.
Sigh, Asian garbage made by slaves is the only alternative….
FTWT I consider Target, CostCo, Home Depot equally sick. More cheap trash and “low prices” at any cost.
In reality the prices aren’t that low but other people and the environment are absorbing the externalities.
8:05 am
Alie, I know I’ve read that the health benefits for Walmart employees are at least equal to Target employees. In some cases it’s better. I think Target’s marketing buys it a large amount of goodwill. And the unions go after Walmart because it’s a bigger target.
But both Walmart and Target charge less for groceries– they both use cheap non-union labor. Of course, whenever a new Walmart or Target opens, there are huge lines of people waiting to apply for those jobs. So clearly those gigs are better than nothing.
If we as a society really cared about these things, we’d be willing to pay more to support it. It’s pretty clear that as a society we value the economic benefit provided by the increased buying power these kinds of stores provide.
8:08 am
dude…don’t lump me in with your society.
8:13 am
Jason, yep, that’s what I thought. As for cheaper groceries, I’ve found that, a lot of times, Cub and Rainbow are the same if not cheaper for things like meat, dairy, and produce. Don’t know about Wally World, though.
8:33 am
I’ve been hoping that a higher-end grocery store would open in the ‘burbs where I live. I would still shop at my neighborhood Rainbow, but I would like the option of some higher quality fare every now and then.
8:42 am
I buy toothpaste at Walmart because Target doesn’t carry my brand. I buy shampoo at Walmart because Target doesn’t carry my brand. Target has for quite a while given up on men. Thus, driving us to alternatives.
8:44 am
Geoff, you’ll always be in your own separate society.
The biggest price difference I’ve noticed is that SuperTarget has really cheap deli meat and milk. Cub has better coupon sales, though. You have to split up your grocery trips to get the best deals.
We’ve gone organic in our house recently.. and getting good deals appears to be a thing of the past. By “we” I mean my wife.
8:51 am
@Bob
What, you don’t think the higher-end chains do market research?
8:54 am
The Rat never buys groceries at Target. There’s something not right about it.
Lund’s one weekend, Whole Paycheck the next; because the paper bags are good for recyclables.
9:17 am
It’s pretty clear that as a society we value the economic benefit provided by the increased buying power these kinds of stores provide.
Partly because most people don’t realize the impact that Walmart/Target etc. have on their own wages. I can try to look it up, but I’ve seen studies that indicate that average wages in non-retail businesses drop ~3% in the surrounding area after Wal-Mart opens a store in a new location.
Here’s one study that looks at retail wages. I’m sure I’ve seen one that mentioned non-retail as well.
9:24 am
Douglas…maybe you should switch from WalMart’s house brands.
9:28 am
Don’t the people lusting after “low, low prices” realize they’re shooting themselves in the foot?
Fine. Buy a pair of jeans for $20 … the same price a pair were 20 years ago.
There are only two ways that price stayed so low: the US worker making those jeans hasn’t seen a wage increase in 20 years, or that the US-based textile company that once had those jeans made in the US is now outsourcing that job overseas where labor is cheaper.
If you want your wages to go up, people, you will have to accept higher prices. If all you want are cheap goods, don’t bitch to me or anyone else about the falling value of your own income.
9:31 am
At least target donates a giant sum of there profits, something like 5%. Lots of schools, parks ect live on target handouts. Wall-mart donates very Little in comparison.
9:34 am
I do not buy groceries at non-union stores because there are union stores available.
Also, in regard to organic stuff, Lunds and Kowalski’s are much cheaper on organic frozen goods (like Amy’s Brand) than Rainbow. And on organic milk.
9:41 am
don’t you people realize that Wal Mart is the endgame of capitalism? Resistance is futile.
9:42 am
You might be on to something Geoff…
9:46 am
More likely on something.
I’ll stay out of this one even though I have plenty of insight.
9:46 am
If it weren’t for child labor, those kids in other lands would have nothing to do but loaf around and play games. We can’t have that!
9:53 am
usually both, douglas. Huxley FTW.
10:04 am
Target = Walmart with more shine.
They both pay low wages, bully suppliers and kill local competition.
Walmart re-wrote the game of retail, target quickly followed suit.
Everybody comes in with the: “there driving jobs out of america BS…they are only driving jobs that no one wanted or weren’t profitable. The real problem with the US economy is the fact that education funding has been cut, lateral thinking and creativity are at all time lows and innovation is being stifled (stemcell research to name one)
We now live in a knowledge economy but our future brain trust is being homogenized and filtered to the point of no return.
/rant
12:19 pm
I read that finally the loopholes are being closed that have allowed giant agri-businesses like Horizon and Archer Farms (Target’s so-called organic brand) to get away with calling their products organic…and driving actual organic farms out of business in the process.
Cows will have to graze outside at least half the year, instead of just being fed organic grain in a feedlot. Hoof bumps all around….
12:37 pm
What, you don’t think the higher-end chains do market research?
I’m smarter than they are. Also, it’s all about me, and my wants.
But enough of that, let’s talk about me.
12:46 pm
I like the candles at Target.
12:47 pm
I read that finally the loopholes are being closed that have allowed giant agri-businesses like Horizon and Archer Farms (Target’s so-called organic brand) to get away with calling their products organic…and driving actual organic farms out of business in the process.
Yeah, the definition of organic for labeling purposes was sketchy as hell. Glad to hear they’re doing something about that.