Despite its image as the upscale discounter, Target is actually cheaper than Wal-Mart. A recent Star Tribune story explored whether or not Target’s upscaled status would turn into a liability when rising gas prices force consumers to focus on price over style.

As part of the story they did a comparison shopping test to see which store was cheaper. Of 14 identical items from various departments, the total at Target came to $106.08, 87 cents cheaper than Wal-Mart and $17.08 cheaper than K-Mart.

I imagine different shopping tests might find different results, but it does show that Target is not automatically the most expensive discount retailer. In fact, it appears Target manages to be very competitive with Wal-Mart.

Experts continue to suggest that Target should emphasize their prices in comparison to Wal-Mart, especially if the rising price of gas continues to force consumers to spend less. So far Target has been insistent on focusing on style, and I imagine they’ll continue to do so. It gives them the market position of being stylish and upscale, while their own customers know they’re cheap and spread that by word of mouth. Meanwhile Wal-Mart continues to be the cheapo discounter, and continues to receive the brunt of anger directed at unfair labor practices and the squeeze put on suppliers and manufacturers. I’m pretty sure Target is quite happy to avoid being tarred with all that. (link via MNSpeak)