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Surprise: Target and Walmart Are Cheaper Than Amazon

Photo: Getty Images
Photo: Getty Images

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How will retailers fight Amazon's online dominance? In Target and Walmart's cases, the plan is to drop prices until customers recognize that Amazon doesn't have all the deals anymore. Dallas Business Journal reports on a study conducted by Wells Fargo and market researcher 360 pi that tracked 100,000 products sold over the past year from Amazon, Target, and Walmart. The results showed that Target's products were consistently 5% cheaper than Amazon and in August, Walmart's prices were 10% lower than Amazon's. In the past, Target has announced that they will match online prices with Amazon and, but lowering prices below Amazon is a new strategy.

The report also noted that Amazon has been raising its prices recently due to a slew of new investments, which could have had an effect on the results of the study, and suggested that Amazon may not be too worried with driving up prices anyway since so many customers are already enrolled in the Amazon Prime program.
· Target and Wal-Mart go from 'matching' Amazon prices to undercutting them [Dallas Business Journal]
· Here's JCPenney's Plan for the Future [Racked]
· Target Takes Aim at Millennials With New Mobile Upgrades [Racked]