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A new Goldman Sachs report highlights that Target (TGT -1.1%) may be the poster child for an...

A new Goldman Sachs report highlights that Target (TGT -1.1%) may be the poster child for an ongoing theme of retailers offering lower and lower prices in order to grab market share (Retailer margin shock: I, II). The firm's data tallies that Target holds a 18.7% pricing edge on toys over comparable products at rival Wal-Mart (WMT -0.6%), and an even bigger gap with Amazon (AMZN +0.1%). But will TGT's big bet on low-priced toys ultimately lead to profits from shoppers loading up on other items at the expense of other merchandise retailers?
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  • Dr. Poly
    , contributor
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    Anecdotal evidence, but I spent some coin at TGT and the stuff that I did buy I could get nowhere else for as little money and I did not stock up with other merchandise while I was there. It has been said to me many a time, if you are shopping there, the store can't be making much, it's probably headed for BK. That's a long way off for TGT, but I don't think they will turn in impressive margins.
    19 Dec 2011, 01:23 PM Reply Like
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