TeeJaw Blog

Which is Cheaper, Walmart or Target?

Posted in Government and Politics by TeeJaw on Wednesday, May 18, 2011, 9: 45 AM

This story says Target is actually cheaper on most items than Walmart.  Especially with the 5% discount you get on everything you buy with your Target Red Card.

I say they’re wrong. “Tar-zhay” will never be cheaper than Walmart because the two companies have completely different business plans.  Walmart’s is simple and straight forward — low prices every day.  Tar-zhay’s is sneaky and complex.  It will beat Walmart’s prices only on items in its weekly sale flyer.  Smart Tar-zhay shoppers have known for years that you should watch for great deals in that weekend flyer but never buy anything else because it will be too expensive. The business plan is to lure you into the store with great deals on sale items in hopes you’ll buy more pricey stuff on which the store enjoys a large markup.  They’re gambling that the great deal they gave you on the sale item will lower your resistance to the higher price on the non-sale item. It’s not bait and switch, it’s just bait. It’s not loss leader either, the price on the sale item isn’t that low.

The 5% discount for using their Red Card could be a new twist in the business plan which I haven’t figured out yet, but I suspect that it’s a variation on the old one.  If you shop Tar-zhay because of the Red Card that may also make you less price conscious and lure you into buying items that are more costly than Walmart even after the discount.

Mrs. TeeJaw sees a flaw in my reasoning.  Compared to Walmart, Tar-zhay is fashionable, snazzy, stylish, spiffy and chic, she says.

Hmm.

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