Kantar study finds Walmart widens price lead over Target
Cambridge, Mass. -- For the second consecutive time, Walmart’s overall branded basket registered as less expensive than Target’s, according to Kantar Retail’s semi-annual pricing study.
Though the baskets of the two retailers still closely contend, Walmart’s basket was less expensive, with the result driven primarily by the retailer’s edible grocery sub-basket. This is the widest lead that Walmart’s overall basket has had across the seven iterations of the study, and the first time since June 2009 that each of Walmart’s sub-baskets registered less expensive than Target’s.
“These results demonstrate the impact of Walmart’s basket EDLP strategy which has intensified since mid 2011,” said Leon Nicholas, senior VP with Kantar Retail and contributor to the study. “Suppliers will continue to feel heightened pressure to improve Walmart’s internal efficiencies if not through outright efforts from Walmart to get suppliers to “match” Walmart-funded price reductions.”
Walmart plans to further its downward pressure on price in an effort to widen this basket price gap, according to Nicholas.