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Redcard needed for price leadership

5/9/2011

Target’s Redcard may become an increasingly more important factor in the retailer maintaining low price leadership.


Customer Growth Partners’ price comparison survey for Target and Walmart revealed that on a comparable 55-item basket of items found at Walmart Supercenters and Target P-Fresh stotes or Target Superstores, Walmart had reasserted price leadership over Target by almost 3%--prior to Target’s Redcard 5% discount. For the first three months of the year Target had 0.6% advantage (prior to the Redcard discount) over Walmart.


When factoring the Redcard discount, Target gets the 2.3% favorable edge in April. CGP said it estimates that Redcards are currently comprising 13% to 16% of sales.

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