In the main window of a Target stop on the weekend was a large sign promoting that they guarantee the best Easter egg prices in Australia.
Attracting shoppers on price only works if this is your thing, if your prices will always be lower and if you keep promoting your low prices.
I think promoting a retail business on price for most items is a mugs game as shoppers who purchase on price are fickle. They will chase the best price and anyone can promote that they will beat you on price.
Price is a point of difference which can be easily topped. At a K-Mart in the same centre as this Target, they were beating Target on a couple of Easter items I checked. But the items were not exactly the same and this is how retailers can get around we will not be beaten on price claims. Chemist Warehouse promoted lower prescription costs as a traffic driver. Now, there are many pharmacy groups and pharmacists matching them.
This is why I suggest to retailers that their point of difference ought not be price.
Newsagents can’t compete with the majors on price so I suggest we don’t. Promote other features of the business.
Sure, some people will shop at Target because they believe the claim and it plays into the relentless claim by Target about price. However, I doubt many will be loyal to Target because of it.