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Posted Date: 6/1/2010

Walmart,Target Wage Price War Against Grocers

Walmart and Target's recent moves to expand grocery assortments are attracting more consumers to shift from making grocery purchases at tradition supermarket retailers according to a recent survey.

Both big box retailers are going head-to-head against major grocery store chains in terms of consumer acceptance. According to the survey, consumers who have shopped at a Target or Walmart super store consistently rate them comparable, if not better, on many key performance areas, including: everyday low prices, availability of both generics and name brands, shopping convenience, ample parking, and overall shopping experience.

According to a new Q & A Research poll, half of the more than 500 households surveyed nationally indicated that their impressions of both Walmart and Target are more positive as a direct result of expanded grocery inventories in many of their stores.

"This is especially good news for these retailers who, in a recession, have come to appreciate that consumers can put off buying even discounted clothing and other merchandise, but can't put off buying groceries," said President Warren Pino of Q & A Research. "many consumers are now buying more groceries, opting to eat out less often to save on tighter household budgets. While the election to put both feet into the grocery business by these two retail giants was made in years prior to the woes of the current economy, that decision appears to be paying off handsomely."

But not everyone is convinced that buying groceries from Walmart or Target is for them. "There is a very strong disparity between realized experiences from those who have shopped for groceries at these stores versus the perceptions of those who haven't," added Pino. 

"I think there is a certain proportion of the population that, regardless of how the economy affects them, is hesitant to buy produce and meats from stores that have traditionally sold them clothing and sundries."

Q & A Research is a full-service marketing research firm located in the San Francisco Bay Area, offering both quantitative and qualitative services. For more information on the study, see: "Walmart and Target Brand Image Enhanced in Poor Economy by Expanded Grocery Inventories."

 

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