The struggle for customers between the two shopping giants will be in the hands of the Americans, not wanting to give dangerous competitor, online retailer Amazon, Target will significantly reduce prices on thousands of items.
In his blog, the retail chain has announced that it will drop all: «cereals and paper towels to baby formula, razors and toilet paper.» The company promises that the prices will be cut very significantly — up to two thirds.
Such a move comes less than two weeks after Amazonbecame the new owner of Whole Foodshas reduced prices on many organic products in chain supermarkets.
Coincidence? Unlikely. Rather, it is part of the strategy of survival in the market. Lately, Target has been struggling to stay afloat and not fold to a competitor. The company spares no money to upgrade the shopping and the strengthening of the online business.
In the last quarter, it stated that we achieved a 32-percent increase in sales via the Internet, and two months ago, has radically updated its range of traditional shops.
To date, the retailer was able to achieve this. While dozens of retailers, including such giants as Sears, have suffered from competition with Amazon or even were not able to withstand, Target continues to delight its loyal customers.
Will the company continue to keep the brand, time will tell. After the announcement of decrease in prices of shares on stock exchanges instantly fell almost 5% during the closing evening of the auction. The announcement took effect on shares of other large retailers: Sears, Wal-Mart, Dollar General and Costco — they also fell in price.
