Target matches Wal-Mart's generic drug price cut

Not a day after Wal-Mart Stores' (NYSE:WMT) announcement it is cutting generic drug prices to $4 in Florida, Target Corp (NYSE:TGT) said it would immediately match these lower prices. Seems Target wants to offer everyday low prices too.

If pharmacy chains thought they were in trouble after Wal-Mart's announcement, their troubles have just doubled. As for Wal-Mart, its competitive edge had just been diluted.

The 300 drugs Wal-Mart had mentioned consist of commonly-prescribed ones, and will be offered for as little as $4 a month. Sixty-five Wal-Mart, Neighborhood Market and Sam's Club stores in the Tampa Bay area are supposed to start the program today. The program will be expanded to all of Florida by January and nationwide by next year.

Target didn't say if it would also expand its offer to match Wal-Mart, but if we read the statement it issued correctly, then Target will always be price-competitive with Wal-Mart.

While Wal-Mart's motives could be related to attempts to improve its embattled public image, Target's motives are clear, and neither are altruistic. But as long as the customers can benefit -- even if Wal-Mart and Target's customers come from different demographics -- the motives aren't that important, or are they?

Perhaps coming from Canada, where a system of public health-care exists, I can't properly relate to all this. I grind my teeth when I hear of big corporations trying to take advantage of poor health-care services while increasing their own profits.