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 5 of 16)
11-17-2006 @ 4:41PM
Jason Bowles said...
Ok, to the many people who are posting that Target does not let the salvation army be infront of the store? WHERE ARE YOU AT? I work for Target Import Warehouse. I shop at my local Target and sure enough there is a salvation army guy out there. As for toys for tots... Each store has their list of charities. And if you really want to get into it. How about the fact that Target Corp donates 7% more than any other company to charities every year.
11-17-2006 @ 4:44PM
Sandra Fisher said...
I will choose K-Mart over Wal-Mart or Target.
11-17-2006 @ 4:43PM
H~ said...
Walmart- I like Target too, but Walmart is by far the cheapest and best deal on everything from groceries to toiletries. I am a Mother of four and I have to save pennies. I go to Wal-mart for all of my electronic kids gifts, alway lower then Target and they are only the same when Target is having a sale. As far as clothes go, I prefer nice clothes from nice shops for myself, but for play I always get the kids clothes their or even consignment. Special clothing for the kids, then I go to the Childrens Place or somewhere specific. I am considered a mainstream mom and never look "cheap." Wal-mart also supports my community. So I spend more of money there and come home with more for fun with the kids.
11-17-2006 @ 4:43PM
Edith said...
Bottom line is....they both want our money and could really care less about us as people, we are all dollar signs as we walk into either store, actually we are that at most stores this time of year... So shop where you want and let me shop where I want...
11-17-2006 @ 4:44PM
Carolaine Amis said...
I shop both stores, prefer Target over Walmart for
cleanliness, assistance and quality. Walmart on the
other hand, does have the best prices at least on the
items I buy there. It does bother me that Target will not allow the Salvation Army to collect for the
underpriviledged, it does not bother me that Walmart supports the "gay" community. As God fearing people,
which most Americans claim to be, we should support all our brothers and sisters regardless of their personal choices. I boycotted Target last year because I love giving to the Salvation Army when I'm Christmas shopping. There's just something missing without it and I will probably do most of my Christmas shopping at the mall.
11-17-2006 @ 4:44PM
Dot said...
I think it's funny that everybody complains about Wal*Mart yet everyone still shops there. I know people that complain and say they never shop there, yet I see them with Wal*Mart merchandise. I've worked there.
The wages sucked and what sucked worse was the customers. I had one lady follow me around my entired department to ask me where the envelopes were. I pointed next to her head. (I had only moved from that place a moment before and she said that she followed me and couldn't see them) That happened all the time. I even had a customer who tried to claim that I didn't put the paint lid on the paint can and when she left it dumped all over her and her car. I had a manager come to me to try to get my take and tell me what I did was wrong when a customer who saw her drive off with the can on the top of her car came in to sort out her mistake. (thanks goes to that guy for some sense) The list goes on and on.
The store is kept completely clean... until the customers come in. Trust me on this. My entire job from 9pm-11pm (or 1 am depending upon how busy we were) was to pick up after customers. You know that one item you decide you don't want that you just drop on the shelf. For two hours or more we pick those items up and put them back. That's a huge portion of our jobs. We also do that throughout our shifts. No wonder we have no time to stock merchandise. (not that I didn't do plenty of that too) My fiance always complained to me about how it's "part of my job" but I keep telling him that if it wasn't done, I'd have more time to do other things and that it wouldn't be my job. He just scoffed it off until he worked there for a little while. Now he has a new appreciation.
I also remember many smaller groups looking for contributions to a specific cause and them being able to find the help at a Wal*Mart. I remember helping a couple who would spend a crap load of money just to donate it to a small group on a Reservation. The donation to these kids were always paper and pens when these kids really needed what kids need... toys. So we loaded up several bikes and gear that not only did the store buy, but several of the employees bought as well. I can only imagine the Christmas these kids had.
But on a comparison note, I find that the reason for dirtiness is volume in the stores. More people mean more clutter. Wal*Mart has a higher customer base because it DOES have hard to beat prices. The Target stores I've been to have had less associates to help; granted those few that I have seen have been on the floor and not busy with another customer. (since there aren't as many)
In essense, I understand Wal*Mart being the 'bad guy' because there are many smaller shops that can't survive. I know in a town not far from where I used to live, Wal-Mart worked with some of the smaller mom and pops to try to keep them in business. I also understand why everybody hates going into Wal*Mart on a Saturday afternoon. Hell, I dreaded working there that day of the week. But you have to give them a break on some aspects. South Park had it right when it showed where the heart is. It's in the customers. If you buy from a place, it will get bigger.... no matter WHERE the place is.
11-17-2006 @ 4:47PM
Denise F. said...
Target has the overall appeal in motion. They appeal and serve the upper class population with the best up to date styles and house hold wares. The store offers so much when you walk into the entrance. Pleasing atmosphere, nice employees overall.
Keep up the good work Target, don't worry about the prices. All is fine!
Walmart is great for families on a budget and bulk items.
11-17-2006 @ 4:48PM
sylvie goins said...
for the 10,000th time Target is not "french owned" it is not pronounced Tar-Jay (it was a joke that started when they first opened because it was a discount department store and people called it Tar-Jay to make it sound french). I looked that up quite a while back because I kept hearing the rumor, it is not french owned. Biggs is french owned if you must know, it is owned by the Carrefour company in France and they are or were the second largest retailer in the world, right behind Walmart.
11-17-2006 @ 7:30PM
becky said...
both stores have many many faults but if a store who does business in this country soesnt suport this country why would you shop there. wether it be the military or our homeless people. also our very own children. please remember freedom isnt free and life can come at us hard but dont turn your back on the people or country that suports your business like target does. walmart has plenty of faults I know I work for them but at lest they suport our citizens.
11-17-2006 @ 4:49PM
Jayme said...
HEY NUMBER 48 SUSAN YOU ARE ABSOLUTELY WRONG WALMART DOESN'T GIVE CRAP TO ANY GAY AND LESBIAN GROUPS WHAT KIND OF CRACK ARE YOU SMOKING ALSO THEY FIRE ALL THEIR GAY AND LESBIAN EMPLOYEES FOR LITTLE THINGS WHILE THE LAZY BASTARD STRAIGHT PEOPLE STILL HAVE JOBS. ALSO IF YOU ARE GAY AND WORK AT WALMART AND ARE GETTING SEXUALLY HARRASSED BY THE OPPOSITE SEX BETTER NOT REPORT IT CAUSE YOU WILL GET FIRED IN RETALIATION! SO TELL ME AGAIN SUSAN WHO THEY ARE GIVING MONEY TO?
11-17-2006 @ 4:49PM
LISA said...
I dont know about all this, its really asham that people are starving in the world, and that there are americans fighting in a war, and all you people are worried about it where to shop for christmas, dont get me wrong, I have kids and I do christmas shop, but this is so sad, this is what we are worried about, Targe or Walmart. Come on people, get a grip
11-17-2006 @ 4:55PM
Sue said...
WALMART IS RIDICULOUS, THEY ARE MAKING ALL THESE "SUPER" WALMARTS WITH OVER 20 CHECKOUT LINES BUT ONLY 4 OR 5 ARE OPEN WHAT IS THE POINT!
11-17-2006 @ 4:55PM
Gerald Stover said...
Target may be French but I'll shop there anyway...Wal-Mart is dedicated to the Gay Agenda and supports gay groups, just like Ford Motor Company and look at their stock prices not to mention closing down plants. Wal-Mart supports gay marriage rights and has said they will give first consideration to gay owned companys to receive supplier contracts. TARGET now TARGET from now on.
11-17-2006 @ 4:58PM
Barbara Frolke said...
I have shopped at WalMart and I have shopped at Target. Although WalMart is not perfect, your chances of getting a fairly well paying position in one of their distribution centers (DC) are much better than in a Target DC. A new Target DC opened up a couple of years ago, just down the road from where I live. I retired after 20 years active duty with the AF, and I applied for a job at Target. I was told that veterans were not given any kind of a preference, except for maybe their experiences. I received an unsigned form letter twice, telling me that fortunately for Target, they found better qualified employees. Several of the applicants were told to their face that they were too old to be hired because they were over 50. And as far as the current employees being from the county that the DC is in, this true did not happen. Most of the employees are from another county.
As far as any of the Target retail stores I have shopped in, the prices have not been comparable to any of the WalMart stores. Even the sale prices have been too high for a lower class customer. I personally will never shop in a Target, even if it is the only store in the state.
1-11-2007 @ 5:48PM
sweetbamagurl4uNTN said...
Target is the better store by far! For the ones complaining about them not having the bell ringers at Christmas time, they donate $1 million to them so the ringers don't annoy their customers. Anyone can donate at anytime, not just at the doors of shopping places, and even better you can donate all year. Most Wal Mart employees offer no help at anytime and the store is always in disarray and nasty. Sounds like this may be the case all over the world. Target is the store that makes you feel at home and the associates are willing to help if you need it.
11-17-2006 @ 4:58PM
henry said...
IN REGARDS TO TARGET YOU WONT SHOP THERE BECAUSE THEY DONT GIVE TO THE ARMED SERVICES OR LET THE SALVATION ARMY RING A BELL IN FRONT , WELL THE ONE THING YOU FORGOT TARGET DONATES 1 MILLION DOLLARS TO THE SALVATION ARMY FROM THERE OWN MONEY , WHICH IS A LOT MORE THAN THE SALVATION ARMY COLLECTS OUTSIDE RINGING A BELL. AND AS TO THE ARMY THE USA IS SPENDING 1 MILLION DOLLARS A DAY WHICH IS TAX PAYERS MONEY ON WHAT , SUPPORT WHAT , I KNOW HIGHER GAS PRICES FOR THE HOLIDAY SEASON , THINK ABOUT GO SHOP AT THE SLUMS OF WALMART YOU ASSES . TARGET ALL THE WAY
11-17-2006 @ 4:59PM
Deb said...
Just wanted to comment on Target and the Salvation Army. Just yesterday morning on a Houston news station, they stated that once again Target is not allowing the Salvation Army to ring their bells at store locations. But, they are donating $1M to the Salvation Army. It may not be the same, but Target is still supporting this organization. As far as the military goes, I would contact Target directly. Whenever I hear things like a company not supporting a particular organization, I contact their HR manager. It beats spreading untrue information.
11-17-2006 @ 4:58PM
Ragan said...
I am reading alot of comments that are based on the appearance of Walmart stores...does anyone stop to think of this..who put the ripped open packages, garbage and whatnot in the store to begin with? Was it the associates? No, it was lazy disgusting customers who figure that associates are getting paid to clean up after them, if everyone got over that mentaility and had some dignity about them selves the associates would have more time to tend to customers and not attempting to clean up after pigs. Walmart is gonna make their money, no matter what, whether you think it's a sin that they suppothe gay community, but at least they supportsomeone, including the military, toys for tots and the salvation army..it's only a matter of common sense on where you should really shop.
11-17-2006 @ 5:00PM
EALINE said...
I HAVE WORKED FOR TARGET...... I WORKED THERE FOR AROUND 3 YRS...... AND NO THEY DO NOT HELP THE MILITARY IN ANY WAY!!!!! WITHOUT THE MILITARY JUST WHAT MAKES THEM THINK THEY WOULD BE ABLE TO HAVE 1 STORE IN THE U.S.A.????????? TARGET IS OUT FOR TARGET....... THATS IT.... I HAVE NEVER WORKED FOR WAL MART, BUT PROBABLY WOULND'T MIND TO. BUT ONCE YOU DO WORK FOR MOST ANY BUSINESS YOU CAN FIND OUT THINGS ABOUT THAT COMPANIES POLICIES THAT YOU REALLY DON'T AGREE WITH AT ALL... AND TARGET HAS A FEW THAT I REALLY DON'T APPROVE OF AT ALL.. THEY TAKE ALOT OF THEIR "DISPLAY ITEMS" AND PUT THEM INTO THEIR OWN CRUSHERS AT THESE STORES! WHY NOT EVEN DONATE THESE ITEMS TO NURSING HOMES, SCHOOLS, DAY CARES??? THERE IS SMALL APPLIANCES, BOOKSHELVES, TABLES, LAWN FURNITURE!!!!!!!!!!!! REALLY.... WHAT A WASTE AND SO MANY OF OUR U.S. CITIZENS ARE WITHOUT AND THEY CAN DO THIS!!!!!!!!!!!!!!!!!!!!
11-19-2006 @ 9:21AM
Megan said...
Just an FYI:
I'm sick of hearing about people not shopping at Target because it is a "French owned" company. That is just completely untrue. It is a publicly traded company incorporated in Minneapolis, Minnesota: USA.
Also, if you actually looked into the true stories behind the "not giving to the military, toys for tots, and bell ringer" issues, you will find a different story. So please fact check before you regurgitate such lies.