Redcard needed for price leadership

Target’s Redcard may become an increasingly more important factor in the retailer maintaining low price leadership.

Customer Growth Partners’ price comparison survey for Target and Walmart revealed that on a comparable 55-item basket of items found at Walmart Supercenters and Target P-Fresh stotes or Target Superstores, Walmart had reasserted price leadership over Target by almost 3%--prior to Target’s Redcard 5% discount. For the first three months of the year Target had 0.6% advantage (prior to the Redcard discount) over Walmart. 

When factoring the Redcard discount, Target gets the 2.3% favorable edge in April. CGP said it estimates that Redcards are currently comprising 13% to 16% of sales.

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