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Target Shares Dive To Lows As Blog Post Tips Price Cuts On ‘Thousands Of Items’

TARGET SAYS IT'S LOWERED PRICE ON THOUSANDS OF ITEMS: BLOG POST

TARGET SAYS IT'S LOWERED PRICE ON THOUSANDS OF ITEMS: BLOG POST
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3 comments on “Target Shares Dive To Lows As Blog Post Tips Price Cuts On ‘Thousands Of Items’

  1. People don’t get it. Amazon’s acquisition of WF is a strategy to provide A with access to “fresh” foods and more importantly and outlet to sell those foods before they go bad through WF b&m outlets. This strategy uses their core skill – inventory management algorithms and has limited competitive advantages. Fresh food orders with Amazon will get first priority at Amazon/WF fresh food inventory, and fresh food that doesn’t sell in a given time 24-48? hrs. will go through WF b&m outlets.

    Regarding dry goods/can goods they still have to deal with shipping costs of small orders and the weights of high liquid foods/canned goods. In the long run this makes the WF strategy more competitive with other high end grocers like Fresh Market than it does volume discounters like Target and Kroger – though both are going to go eventually from their demonstrably poor/too late management adaptation to the Amazon business model. Probably Walmart/Sams as well. However, that timeline has a number of other variables affecting it like the general economy. Better managed and more cost competitive grocer companies like Aldi will hold their own.

    It’s a lot easy to compete against low margin items in a “good” economy with relative high – if not optimum employment level. If that changes – all bets are off for Amazon.

  2. Bezos was overheard saying, “L’etat, C’est Moi” (The State, that’s me.)

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