Target and Aldi have recently announced big price cut campaigns
Walmart and Kroger have improved their own-label offerings
Think Target – which this morning reported another drop in its sales – and other supermarkets are lowering grocery prices just to help you? Think again.
Target said Monday it is lowering prices on 5,000 everday products from milk to diapers as the big-box retailer looks to win customers from Walmart.
Earier this month, supermarket Aldi said it was dropping prices on more than 250 items. Walmart has this year used its ‘rollback’ promise to cut prices and, like Kroger, has invested in improving its own-label ranges.
‘We know consumers are feeling pressured to make the most of their budget,’ said Target’s chief food officer Rick Gomez said – giving the impression the company was simply helping customers. It echoed what Aldi’s boss had said.
But the real reason is simply down to business. With some grocery costs finally starting to fall after two years of punishing pricrei rises, supermarkets that are slow to pass them on will lose customers – fast.
That is exactly what is happening to Target. It announced this morning its sales for the first three months of 2024 are down on last year – which was its worst year in seven.
University of Wisconsin economics assistant professor Andrew Stevens told local station WSAW-TV that lowering prices is often used as a marketing tool to get one up on rivals.
‘Consumers definitely notice when prices go up on something, and tend to not notice when they go down on something,’ he said.
www.dailymail.co.uk/yourmoney/article-13444021/Target-Aldi-Walmart-lowering-prices-supermarket.html
Its also to help more profit from buying from their brand than the middle man and probably to help influence the election and appear prices are getting better!!!!
h/t known