Wal-Mart Stores, Inc. (NYSE:WMT) and Target Corporation (NYSE:TGT) have started throwing punches leading up to the "official" holiday shopping season that starts on Black Friday -- the day after Thanksgiving. In quarterly results conference calls from both retailers that happened this morning, both retail behemoths came out punching and seemed smug that the public will choose them over the competition this holiday shopping season. Want to see all the nitty-gritty details? Amey Stone and myself liveblogged both results conferences this morning -- check out the Wal-Mart liveblog here and the Target liveblog here.
Both companies mentioned that toys, games and electronics were the hot holiday categories this year (as well as the most recent quarter for both), and both mentioned that they were the country's two largest discount retailers. Wal-Mart is going to use its strengths of "everyday low prices" and vowed to have "its most aggressive pricing strategy ever" to fuel year-end holiday shopping business. However, in spite of trying to move all that merchandise at rock-bottom prices, Wal-Mart warned the move could also make it miss Wall Street's expectations for fourth-quarter earnings. How's this Wal-Mart -- do you really need to lower prices that much? What's the point in holiday retail marketshare if you're going to make less profit?
I've never quite understood why some companies -- even Wal-Mart -- think that marketshare is more important that making money. Marketshare does not pay the bills, employees, satisfy shareholders (except short-sighted shareholders) or do anything else except give temporary bragging rights. I say, who cares?
Target Corp. reported a 16 percent gain in third-quarter profit, beating analyst expectations as its sales rose 11 percent. Target President Gregg Steinhafel told investors during the quarterly results conference call this morning that the retailer would compete on long-running discounts and would match Wal-Mart move-for-move -- noting that it has often matched Wal-Mart pricing before Wal-Mart advertises them in its circulars.
The game is on...
Wal-Mart and Target show start of holiday price war
Posted Nov 14th 2006 4:00PM by Brian White
Filed under: Products and Services, Industry, Consumer Experience, Internet, Competitive Strategy, Wal-Mart (WMT), Marketing and Advertising, Target Corp. (TGT), Black Friday
Tags: Tareget Black Friday, TaregetBlackFriday, Target Corp., Target Stores, TargetCorp., TargetStores, TGT, Wal-Mart, Wal-Mart Black Friday, Wal-Mart Stores. Inc., Wal-martBlackFriday, Wal-martStores.Inc., WMT
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Reader Comments (Page 16 of 16)
11-18-2006 @ 12:17AM
vickie parkey said...
I love shopping at Target,so much better than Walmart. But come on now TARGET where is your HEART for Our Troops fighting for Our Country??? Can't you let the Salvation Army STAND at your door again? I feel you will loose a Whole lot of customers if not. PLEASE SUPPORT US, SO WE CAN SUPPORT YOU!!!!!!!
11-18-2006 @ 12:03AM
Paul Brothers said...
I agree with Ruby--I used to shop at Target a lot. Ever since they refused to allow the Salvation Army to have a Santa out front, I have blackballed them and tell as many people as possible to stay away from their stores--I made sure to notify our employee bulletin board regarding these scumbags!
11-18-2006 @ 12:04AM
Elsie Jones said...
Yes, I like Wal-mart better than Target because Wal-mart has better sales..But sometimes target has what you want and sale so you go there..I don't think there a rule in which store you shop...some like wal-mart and some don't...the only thing I see is the managers and department heads treat assocates like sh.t and that is right at all..I have seen it in our local Wal-mart...some assocates want to get ahead and they hold them back....
11-18-2006 @ 12:00AM
Cookie said...
Return policy at TARGET stinks. If you can't return it in a few set days, (is it 60?) you can't get your money back (even w/ a receipt). Terrible. Wal-mart is a better deal.
11-18-2006 @ 12:05AM
Maureen Madaj said...
Forget about Target forget about Wal Mart. Come shop at Meijer. It's clean, has wonderful employees, good prices and they support the toys for tots program. All those handsome Marines walking around the store..WOW talk about eye candy!!
11-18-2006 @ 12:06AM
Jo said...
It would be a lot better world in my opinion, if people would do research before they form an opinion and spot off about it. Target has a "no solicitation policy" and has for years. They made an exception for the Salvation Army, but then decided if they continued to make an exception for them it would open the door for other groups to solicit customers. So they don't discriminate against the Salvation Army by not allowing them, they just stopped discrminating against every other group. That sounds fair to me.
Snopes.com, people....try checking it out to see how much of what you accept as fact is really an untruth, partial truth or just plain urban legend!
11-18-2006 @ 12:15AM
michelle said...
Have you ever ordered from Target online? I have and Target ripped me off royally. Their shipping options included next day which is actually two days they state. I paid way more than twice the cost of the item I ordered to get the item in one or two days. It arrived in three. When I called them to get a refund, they refused - only gave me a percentage. The clerk I spoke to acted as though she owned the company and there was no way they would give up the money they stole from me under false pretenses. I have done a LOT of mail-ordering over the internet and I have never ONCE been denied a refund when promised conditions or quality were not as expected. TARGET, YOU HAVE GOTTEN TOO BIG FOR YOUR BRITCHES. WAL-MART, HERE I COME, BECAUSE TARGET DOES'NT WANT THE $300. - $500. I USED TO SPEND THERE EACH MONTH! Target, you stole my money. Give it back to me if you don't want me and everyone I know to boycott your store and its unethical business practices.
11-18-2006 @ 12:21AM
Rosa Cerrato said...
FINALLY I CAN GO SHOPPING TO WAL-MART. THEY HAVE REALIZED, LIKE MOST OTHER STORES, THAT DEC. 25TH IS CHRISTMAS NOT HOLIDAY. NOW THAT THEY HAVE FINALLY EMBRACED CHRISTMAS IS CAN GO AND SHOP AT THEIR STORE... THANK YOU WAL-MART....AND MERRY CHRISTMAS...
11-18-2006 @ 12:24AM
Dean said...
RE: TOYS FOR TOTS
Target does not support toys for tots and they have as of last year booted out the salvation army. I at first was angry at this too, but did you know that Target leads Fortune magazines list of the most charitable companies?
11-18-2006 @ 12:23AM
RM said...
I don't care who owns them, what they believe in, such as gay support, no salvation army or toys for tots. Toys for Tots in some areas are so over filled they cannot get rid of it all. If I were to choose based on my opinion of their beliefs I would support giving to the elderly in nursing homes, most of whom are forgotten all year. Yet neither of the stores do that. So I would still choose Target because a little help goes a long way. Customer Service! A long gone thing in these times, is what matters to me. If I am giving you my money that I earned, I expect a certain level of service to receive my money or I will go somewhere else. Whether it be a simple, Can I help you find something? Or a smile at the register and some slightly friendly conversation.Bye Bye Walmart! If everyone is worried about morals, don't forget how many times Walmart has been sued. Underpaid women and minorities ect. ect. The list goes on with threatening bands, and other retailers.
11-18-2006 @ 4:36PM
JOANNE said...
TARGET WINS MY VOTE # 1 SPIC N SPAN STORE # 2 MUCH QUIETER THAN WAL-MART AND BETTER CLASS PP TO DEAL WITH INSIDE STORE. ALWAYS EMPLOYEE AROUND AT ALL TIMES TO HELP OUT WHEN NEEDED
11-20-2006 @ 8:16AM
Randy said...
It simply amazes me how ignorant some people choose to be. It has been posted on here a hundred times that Target is not owned by a French company and that is a TRUE statement, but yet people still are ranting and raving that is is owned by the French and they won't shop there, wake up people. I have been in retail management for 32 years now and have seen how much things have changed for the worse. Parents and grandparents bring their kids into stores and just let them run wild, tear things up, jump up and down on expensive furniture and mattresses and throw things everywhere. Where did teaching them to respect other people's property go? EVERYONE should be required to work in a retail store in high school for at least a month so they could just see what it is like to have to pick up after everyone. If they let the kids get away with the stuff they do in stores, I can only imagine what their homes look like
11-23-2006 @ 9:49PM
Meggie said...
I SAY DON'T SHOP WALMART, TARGET OR ANY STORE ON HOLIDAYS. THESE GREEDY STORES MAKE PLENTY EVERY OTHER DAY. GIVE THE EMPLOYEES THE DAY OFF WITH THEIR FAMILIES AND MAYBE THAT WOULD MAKE THEM HAPPIER WITH THEIR JOB TO BE AS FORTUNATE AS SOME OF US THAT DO HAVE IT OFF. IF WE ALL QUIT SHOPPING ON THOSE DAYS IT WOULD COST THEM MORE TO BE OPEN & NOT MAKE A PROFIT. I have had nice, helpful people at Wal-Mart & Target. It can go either way at any store, restaraunt, etc. You can't say the entire chain of any store is bad because of the 1 or 2 employees that were rude. Other than working holidays, crappy hours, getting paid not so good maybe another reason employees could be less helpful or rude is their personality. Maybe that's the way they are all the time. That is pretty wrong for Target not to help out (that's the French for ya) with the needy or our WONDERFUL TROOPS - THANK YOU ALL! WE SUPPORT OUR TROOPS 100%!!
11-23-2006 @ 9:48PM
Get a FACT before you post said...
Hey #177 & 178 dreadloccowgirl (whatever kinda name that is) Why don't you try to find a FACT before you post something. You are an IDIOT. You have NO FACTS. To say EVERYONE that shops at Walmart is poor and ALL employees are on welfare is the absolute most ignorant thing I believe I have ever heard. I am sure there are millions that can prove you wrong. I make 6 figures and shop there and know someone that works there making $40,000 a year (probably one of the highest paid but still) and he is definately not on welfare. This stereotyping people do make them sound nothing more than ignorant. I don't know where some of you others shop at Walmarts but you must live in a poor town that has a really old Walmart & a brand new Target. I have not seen a dirty Walmart. I agree with #91 saying it's the customers making the stores messy. It won't kill your lazy but to put something back in it's place. Think of the employees as humans too. They probably don't love Walmart that much either.
11-23-2006 @ 9:54PM
Get your facts straight said...
#163 Get your facts straight - Walmart does have healthcare & keep on hating see where that gets ya!