The latest pricing studying from Deutsche Bank analyst Charles Grom shows a basket of 50 items is still cheaper at Walmart than Target, but by a slimmer margin than in the past.
“Walmart maintained its price leadership position over Target in our October pricing comparison (across 50 SKUs), however the spread narrowed sequentially suggesting significant price investment by Walmart has yet to occur,” according to Grom. “In fact, the basket for the 22 identical items we have tracked since March 2006 rose 4.7% sequentially and 3.1% year-over-year at Walmart to a multi-year high level driven by inflation in food (cereal, coffee, soft drinks) and household items. Interestingly, for the second consecutive month, Target’s food basket (19 items or 38% of the mix) were below Walmart’s aided by temporary price cuts.”
The Deutsche Bank survey results released on Friday confirmed results of a similar pricing study released the prior day by Credit Sui