Wal-Mart stores implemented another phase of its low-price prescription drug program this week, and in response Target followed suit with price reductions of its own. In addition to offering a 30-day supply of many popular generic prescription drugs for $4, Wal-Mart is now offering a 90-day supply for $10. And now, so is Target.
In response to the price cuts, Target said that it "understands the challenges guests are facing in the current economic environment." But Target doesn't position itself as the "low price" leader like Wal-Mart does. Its marketing is more upscale, as is the appearance of its stores -- even while carrying much of the same merchandise. So why is Target matching these prescription drug price cuts? To try and prevent losing customers to Wal-Mart, of course.