Easter basket with candy displayed in it
Photo / Target

Will low prices win Easter? Target and Walmart think so

Target and Walmart are heading toward Easter with offers of holiday savings for cash-strapped shoppers.

Target is playing up its selection of sweets to help its customers create inexpensive Easter baskets. The chain says shoppers have a choice of more than 200 seasonal treats priced under $5. The retailer, mindful of margins, reminds customers that its “affordable basket builders go beyond a wide assortment of treats from beloved national brands to include more than 30 new seasonal sweets and snacks from Target-owned brand Favorite Day. With so many choices, you can pick a mix of flavors and fun to create a truly memorable Easter basket.”

Walmart is being even more assertive than Target about its holiday pricing message offering customers the ability to create Easter meals and baskets for the same price as last year. The retailer says customers can purchase a curated meal and Easter basket for under $100.

The chain cites research that shows nearly two-thirds of consumers expect inflation to affect their Easter celebrations as the impetus for its actions.

“Our purpose is to help customers save money and live better,” writes John Laney, executive vice president, food, Walmart U.S., in a company blog. “We’re committed to keeping prices low, so families can spend less time worrying about the cost of coming together and more time celebrating with their loved ones. To ensure our customers can do just that, we’re continuing to invest in the moments that matter this year by offering a Walmart-curated Easter meal and Easter basket at last year’s price.”

Both chains’ food pricing messages come at a time when many consumers question whether grocers are getting rich at their expense.

A dunnhumby survey of U.S. consumers found that they think prices for food at home are rising at more than twice the inflation rate. They also believe that grocery stores’ net operating margins are 35.2 percent instead of the 2.5 percent earned in the real world.

BrainTrust

"Both retailers can protect margins by mixing national and private labels brands into affordable, highly compelling bundles that resonate with a squeezed consumer."

David Spear

VP, Professional Services, Retail, NCR


"Food inflation, gas prices, and discretionary spending are all still limited. Any message and investment in price will definitely be welcome by shoppers."

Richard Hernandez

Merchant Director


"Much of this is about protecting volumes and market share. Consumers are increasingly trading down and shopping around in food in a bid to save money."

Neil Saunders

Managing Director, GlobalData


Discussion Questions

DISCUSSION QUESTIONS: Is price messaging more critical in the current economic environment for discretionary and non-discretionary purchases? What are the keys for retailers to protect margins at times like these?

Poll

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Mark Ryski
Noble Member
1 year ago

Price messaging has been a strong play for the last year, and it will continue to be while inflation remains persistent and high. Walmart and Target are right to lead with pricing as we approach the Easter holiday season. The key to protecting margins is about being selective with offerings and especially the use of private brands that typically have higher margins.

Neil Saunders
Famed Member
1 year ago

Much of this is about protecting volumes and market share. Consumers are increasingly trading down and shopping around in food in a bid to save money. Both Target and Walmart need to strongly promote a value-for-money message to protect their business. Doing this on very visible items, like Easter products, is helpful. On top of this, a lot of Easter products are discretionary so if the price isn’t right, it’s very easy for consumers to trim volume a little and buy less as they are doing their regular shops.

David Spear
Active Member
1 year ago

No doubt, price messaging wins the day during inflationary times as consumers’ pocket books have been pinched for several months. Both retailers can protect margins by mixing national and private labels brands into affordable, highly compelling bundles that resonate with a squeezed consumer.

Georganne Bender
Noble Member
1 year ago

“Investing in the moments that matter.” I love that. I also love how both Walmart and Target are using positive messaging to help consumers celebrate important family holidays, especially in these trying times. Of course, both retailers are in it to make money but the marketing strategies in use also help build loyalty.

Gene Detroyer
Noble Member
1 year ago

The price message always has value for Walmart. In these times of inflation, it doesn’t hurt Target. The actual buying behavior may be less sensitive. If my kid’s favorite candy is Peeps, do I care what the price is? I am not interested in explaining why the Easter Bunny is cheap.

If apparel is the special Easter thing, do I want to skimp at this time of the year?

Mark Self
Noble Member
1 year ago

It is absolutely more critical, especially for “discretionary” purchases like Easter candy so, yes, I think this will work for both Target and Walmart. These two merchants are already known for value pricing, so all they need to do here is highlight inflation-fighting Easter candy prices…

Shep Hyken
Active Member
1 year ago

If prices aren’t low, then don’t be surprised if sales for the “extras,” which include chocolate eggs, bunnies, etc., might be a little off. These are nice-to-haves but not need-to-haves. In the rocky economy that goes with inflated grocery prices, customers are sensitive to higher prices. For the holiday, we have to keep margins lower and focus on volume. Promotion will be paramount to the success of this Easter season.

Richard Hernandez
Active Member
1 year ago

Food inflation is still an issue, gas pricing is about to go up with summer blends, and discretionary spending is still limited. Any message and investment in price will definitely be welcome by shoppers.

William Passodelis
Active Member
1 year ago

As they used to say “it’s the economy stupid” (Not my words) and definitely right now—- It’s the price Also!