Target Corporation (NYSE: TGT) has woken up and realized that in this day and age, marketing, colors, positioning and everything else comes second hat when discount retail is involved. Larger competitor Wal-Mart Stores, Inc. (NYSE: WMT) has taken the lion's share of retail dollars in the last three quarters based on its "Save Money. Live Better" marketing slogan and mode of operation. When pennies are to be pinched, pricing is all that matters.So, in a long-delayed response, Target will be testing out competitive price matching in some of its Minneapolis stores. Wow. That is fantastic. Customers will need to bring in a physical paper copy of a competitive ad -- on the same exact product and model -- to receive a price match. I Guess Target won't proactively try to have the "lowest price" until tagged by the consumer. Not that any other retailer proactively does this either, but Target had a chance to up the discount game here.
Target's "Unbeatable Prices. Guaranteed" marketing program is long overdue. Price matching the competition is a tried-and-true (and expected) part of all retail. Why has Target waited this long? Wal-Mart may have the perception of the lowest prices, but by becoming the verifiable "lowest price" discounter, perhaps Target could have swooped in and stolen some of the market share Wal-Mart took back for its own good. Instead, Target's luck in trying to outdo Wal-Mart in this recession won't ever have a chance to gain traction. But then again, Target shares are at a six-month high -- so maybe it should not even worry. What do you think?
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