Target compares critically on convenience items
February 7, 2010
In the Jan./Feb. RFFR cover story on Target Corp., Minneapolis, we promised a little more information about how the retailer is approaching its P-Fresh discount stores, those with extended pantry and perishables operations, and the price comparison included in this article is an extension of our previous coverage.
It is an extension intended to provide a snapshot of how the retailer is taking on its supermarket and supercenter competition in a key shopping scenario.
P-Fresh encourages consumers to shop for a wide range of grocery needs at Target discount stores, but many customers will get their first taste of the retailer’s food offering when they make convenience purchases while browsing general merchandise.
Target executives have asserted the company’s need to be more aggressive on price. So, how does Target stack up in terms of price, particularly on items consumers might make as initial food purchases? RFFR priced two convenience purchasing scenarios at a supermarket operated by Giant, Landover, Md., a supercenter operated by Walmart, Bentonville, Ark.,and a Target P-Fresh store in the Bethlehem/Nazareth/Easton area of eastern Pennsylvania. In the first case, we looked at what a shopper might pay if grabbing something to feed a couple of the guys coming by to watch a football game. We decided the guys would be more than happy with some basic sports fare. For clarity’s sake, we limited our mini study to frozen food. Beer is not included.
Target
Market Pantry Pepperoni Pizza 21.6 ounces $2.99
Market Pantry Stuffed Jalapeno Peppers 8 ounces $2.28*
Market Pantry Mozzarella Sticks 8 ounces $1.99*
Market Pantry Buffalo Wings 10 ounces $2.28*
Total spent: $9.54
*On sale, all regularly $2.69
Giant
Giant Pepperoni Pizza 20.7 ounces $3.29
Giant Jalapeno Bites 8 ounces $2.79
Giant Mozzarella Sticks 11 ounces $2.87
T.G.I. Friday’s Buffalo Wings 10 ounces $3.19*
Total spent: $12.14
*No Giant brand Buffalo wings available; closest equivalent private label product was buffalo chicken tenders, 10 ounces, $3.39.
Walmart Supercenter
Great Value Rising Crust Pepperoni Pizza 28.3 ounces $3.98
Snapps Cheddar Cheese Pepper Bites 5.5 ounces $1.00
Snapps Mozzarella Sticks 5.5 ounces $1.00
T.G.I. Friday’s Crispy Buffalo Wings 15 ounces $4.88*
Total spent: $10.86
*Great Value Buffalo chicken wings were available but only in a 32-ounce size that was priced at $6.50.
Yet, what if the occasion wasn’t guys coming by for football? Rather, what if the neighbors were coming over on a Saturday night to watch a DVD? Purchasing might be a little different, and the amount spent as well.
Target
DiGiorno Ultimate Toppings Pepperoni Pizza 24.1 ounces $6.29
T.G.I. Friday’s Mozzarella Sticks 11 ounces $3.14
Archer Farms Spanakopita 12 ounces $4.99
Total spent: $14.42
Giant
DiGiorno Ultimate Toppings Pizza 24.1 ounces $6.49
T.G.I. Friday’s Mozzarella Sticks 11 ounces $3.19
Pillsbury Savorings Cheese & Spinach Bread Bites 8.5 ounces $3.99*
Total spent: $13.67
Walmart Supercenter
DiGiorno Ultimate Toppings Pizza 24.1 ounces $6.25
T.G.I. Friday’s Mozzarella Sticks 11 ounces $2.98
Pillsbury Savorings Cheese & Spinach Bread Bites 8.5 ounces $2.78*
Total spent: $12.01
*Selected as nearest equivalent product to Archer Farms Spanakopita.
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