Target had advantage in Kantar Retail’s pricing survey
New York City -- While Walmart and Target continue to closely contend on price, Target’s basket price came in less expensive in the latest semi-annual pricing study by Kantar Retail.
“Walmart’s price positioning reveals that it has largely returned to a blanket EDLP approach, while Target’s TPC positioning is centered on price promotions to drive guests’ impressions and achieve actual basket price leadership,” said Leon Nicholas, senior VP of Retail Insights for Kantar Retail and contributor to the study.
The survey, which Kantar Retail conducted in January, compares co-located Walmart and Target stores in northeast Massachusetts on a basket of branded consumable products to determine which retailer offers the best price. The survey also measures private-label pricing strategies and provides insights into the retailers’ pricing competitiveness and reveals implications for suppliers.
In the survey, Target’s overall branded basket was 2.8% less expensive than Walmart’s, driven by the HBA sub-basket results. However, Walmart’s edible and non-edible grocery sub-baskets came in just below Target’s.
Other results include:
About one-fourth of Target’s basket items registered 10% (or more) less expensive than Walmart’s, a noticeable increase over previous evaluations.
In contrast, fewer than 15% of Target’s basket items were 10% – 30% more expensive than Walmart’s and none were priced at or above 30% over Walmart, representing a shift since the past two studies.