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The Amazon Effect

13 September 2017

From CNBC:

Target shares dropped after the retailer posted a blog on Friday, promising to lower prices on thousands of goods.

The cuts will be on items including cereal, paper towels, baby formula, razors and bath tissue, Target said. And the news comes just days after Amazon started cutting prices at Whole Foods’ stores across America.

Target shares were trading around 3 percent lower Friday afternoon on the announcement.

 “We want our guests to feel a sense of satisfaction every time they shop at Target,” Mark Tritton, Target’s chief merchandising officer, said in a statement.

“Part of that is removing the guesswork to ensure they feel confident they’re getting a great, low price every day,” Tritton added.

“We’ve spent months looking at our entire assortment, with a focus on offering the right price every day and simplifying our marketing … all while maintaining sales we know are meaningful to guests.”

Target said it hasn’t ditched promotions entirely, but instead will focus on only the most “compelling” sales. The big-box retailer has now eliminated more than two-thirds of its price and offer “call-outs” in stores, so big savings will be easier for shoppers to spot.

Link to the rest at CNBC

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2 Comments to “The Amazon Effect”

  1. Target has the same problem bookstores have – the last time I went in one I walked out empty-handed.

    Target needs to up their game against the likes of Wal-mart, never mind Amazon.

  2. I wonder how this will work for Target. When J.C. Penney went to a low-price-every-day model with no sales, it was disastrous. They quickly reverted to running lots of “sales” to save the business.

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