Market share gain to continue

Negative same-store sales, which Target has reported for four consecutive months, are generally an indication of a company that is losing market share. That would normally be the case, but in the current consumer spending environment, other retailers who compete with Target are reporting steeper losses and ceding share.

“Our everyday (prices) and ad prices are extremely competitive with Wal-Mart and other specialty retailers who lead their categories,” said Kathee Tesija, Target’s evp of marketing. “We have gained market share in every quarter this year and we are confident we will gain market share again in the fourth quarter.”

The company plans to be equally if not more aggressive with pricing during the holiday season in keeping with the pay less aspect of its familiar, “expect more, pay less” brand promise.

“From a promotion standpoint, we have taken a very aggressive point of view this year and we expect to be price leaders on selected items in our circulars,” Target president and ceo Gregg Steinhafel said.

“We are raising retails where the market will bear it, but we remain absolutely committed to being priced with Wal-Mart on all identical items in local markets,” Tesija said.