-- "Target hasn't opened a single store in Canada, and already
Wal-Mart wants Canadians to know it's the price leader north
of the border. Wal-Mart Canada will lower prices on 10,000
products in July. The company called the sale, which it says will save
customers $50 million next month, the biggest in Wal-Mart's 18-year
history in Canada.
While Target's Canada debut is at least six months away, part of
Wal-Mart's strategy is to get out front in the brand messaging wars. Minneapolis-based Target plans to open more than 100 stores in Canada
starting next year. Last year, Target paid $1.85 billion to acquire the
leases of as many as 220 Zellers stores, a Canadian discounter, with
plans to convert many of them into Targets."
MP: Some of the economic lessons here are: 1) consumer sovereignty, 2) intense "cutthroat" competition is good for consumers, 3) Walmart's everyday low prices provide obvious direct benefits and cost-savings to its own customers, but also provide indirect benefits and cost-savings to all of those customers who may never shop at Walmart and only shop at Target or other retailers. Reason? Walmart's low prices provide a powerful form of price discipline on all of its competitors, who would be able to charge higher prices in the absence of Walmart.
Bottom Line: Walmart is the consumer's BFF, even for those consumers who NEVER shop there.