Dive Brief:

• Target had a big weekend, setting an e-commerce traffic record on Black Friday and doubling that Cyber Monday, thanks in large part to assertively promotional pricing. Its toy prices, for example were 1.3% below Wal-Mart on Black Friday, 5.2% below Amazon.com Inc., and also beat Toys R Us and Kmart, according to research from Bloomberg Intelligence. 

• On Cyber Monday, the retailer offered a 15% site-wide discount, plus sale prices on a host of other items, some in limited quantities. And it eased up on some restrictions, simply cutting pricing on apparel and toys by as much as 30% without requiring a purchase like “buy one, get one free.”

• The prices led to virtual stampedes online, leading the retailer to meter traffic and throw up “please hold tight” banners that kept people in line for shopping or checkout but that frustrated many.

Dive Insight:

Wal-Mart took issue with the idea that Target beat it on toy prices in any meaningful way, with spokesman Bao Nguyen telling Bloomberg that “when we look at our assortment on Walmart.com across the board, we know we meet or beat our online competitors’ prices four out of five times. This is thanks to the smart pricing tools our technology teams have developed.” And Amazon questioned whether the survey took into account its Lightning Deals.

Still, at least for this past big shopping weekend, Target seems to have emerged as a low-price leader, which could go far in its competition with Wal-Mart and with Amazon.

Retailers appear to be keeping a close eye on each other’s prices, especially on toys, in order to avoid being beat on price. Many shoppers are able to check prices and availability of items on their phones, making price comparisons easier than ever.

That sounds like a price war that could send margins hurtling downward, considering how much time is left in the holiday shopping season.