360pi, which actively monitors millions of products from hundreds of retailer websites, today announced that according to its price intelligence data, Target dropped prices on its monitored assortment by more than 20 percent in the days leading up to its confirmation of the data breach that compromised the personal information of 70 million customers during the pre-holiday shopping season.
According to 360pi's chart below — which analyzes approximately 830 products across eight categories, including TVs, tablets, digital cameras and more — Target dropped its prices by 18 percent between December 14 and December 17. Prices continued to drop another 5 percent leading up to Christmas. In comparison, Walmart dropped prices by only 5–6 percent during the same time period.
"Our data suggests that, faced with a loss of customer trust, mounting inventory and a shrinking pre-Christmas shopping window, Target may have taken a dramatic price decrease approach to attract price-sensitive shoppers and minimize the impact of lower sales," said Jenn Markey, VP of marketing for 360pi. "It appears to us that this pricing strategy did not completely mitigate the financial impact of the breach, as Target's fourth quarter profit decreased by 46 percent while Walmart's fell only 21 percent."