Target says that they will increase Marketing Spend

Ad Age says that Target will increase their Marketing push. This is big news on top of the recent announcement that they will be leaving the Amazon ecommerce platform and taking that function inhouse.

“We expect to spend more as a percent of sales in Q3 and Q4 this year than we did last year,” Mr. Scovanner said during an earnings call. “For the year, our marketing plan is right on. But we have saved some money here in the front half for the expressed purpose of being able to invest it in the back half.”

The article states that Target is starting to win in a low price message v. Walmart. In my opinion this is a bit contrary to how Target used to compete. In my area, their stores in general were more deluxe than Walmart and you got the impression that you would pay more for the better shopping experience.

Ad Age also states that the focus for increase in marketing spend will be on grocery and pharmacy. This puts the sites on Walmart in my neighborhood as the local Walmart just refurbished their store with a huge focus on grocery and pharmacy.

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