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    Target Corp Announces Full Price Reduction In Response To Market Competition

    2017/9/18 10:23:00 102

    Target CorpMarketShopping

    According to the world clothing shoes and hats net, America's first discount department store.

    Target Corp

    The Taghit group announced a full price reduction on Friday.

    market

    Competition and price war launched by peers.

    Target Corp., chief marketing officer of Taghit Mark Tritton, said in a statement that the company spent time and price in the whole category of research to focus on providing the right price every day, while simplifying marketing to our customers every time.

    Shopping

    They can all be satisfied.

     Taghit

    Price wars are all bad.

    At the end of August, after completing the $13 billion 700 million acquisition of grocery retailer Whole Foods Market and Inc. (NASDAQ:WFM) food wholesale, Amazon.com Inc. (NASDAQ:AMZN) Amazon group, the world's largest electricity supplier, launched a price cut on the whole grain supermarket, which resulted in a sharp fall in share prices of many competitors, including Wal-Mart Stores Inc. (WAL-MART), and its market share, which is also considered by the market to be the beginning of a new round of price war in the industry.

    In addition to Amazon, WAL-MART, the world's largest retailer, began a new price adjustment earlier this year, in addition to coping with its old rival Amazon, in order to maintain competition against new rivals such as Aldi and Lidl.

    Both Amazon and WAL-MART have strong supply chain advantages. With the help of suppliers, the price wars of the world's two largest retailers have led the industry to an endless price cycle.

    Therefore, when a major player in the retail market starts to adjust the price, other players will have to follow up, even if the price cuts will cause the profit rate to be damaged, because if it does not follow up, the sales will be damaged and the final profit ability will also be infringed.

    Consumers only buy discounted products:

    In the highly developed retail industry, especially the emergence of a large number of e-commerce promotions and flash buyers, consumers have become accustomed to discounted consumption.

    This trend has also seriously affected the pricing strategy of brands and department stores. The Department Store began to sell promotions a month or even less than a month after the launch of many new products.

    Retail sales promotion strategy has spawned consumption expansion, but in a depressed economic and consumer mood, retail sales have to increase this weight and create a vicious circle, so that consumers will only wait for the best discount period before buying.

    As a retailer can not continue to bear the loss of inventory reduction and depreciation, it can only know the damage to profits, and has to continue to increase sales promotion efforts.

    In recent two years, retailers have realized that this once highly effective industry rule has caused great damage to the industry. Many retailers have begun to adjust their pricing strategies to reduce discount sales.

    However, consumers are seeking new discounts from the electricity supplier channel and providing convenient delivery and replacement services. This is another reason why traditional retail industry has been battered recently.

    Retailers invest in product prices:

    Large retailers, including WAL-MART, Taghit and Amazon, have invested heavily in price, aiming at the fact that consumers are not really required for the products at present.

    Brian Cornell, the chief executive of Taghit department store, has carried out a series of reforms to the company since it came into power in 2014. The core two points are the electricity supplier and the supply chain. For this reason, the company has also taken the corner of Amazon. The Arthur Valdez, who served the latter 16 years, was appointed the executive vice president and chief supply chain and logistics officer of the Taghit group.

    These reforms have brought good results to Taghit. The company picked up growth in the two quarter, and the same store sales increased by 1.3% over the same period last year, mainly driven by an increase of 32% in online sales. It showed that in order to strengthen competition with WAL-MART, Amazon and Kroger Co., the strategy of maintaining grocery products at low prices and strengthening publicity and promotion strategies was effective.

    Passenger traffic also increased by 2.1%, the largest increase in over 2 years.

    Consensus Metrix's combined sales growth for the same store is only 0.7%.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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