Wal-Mart's low-price message and emphasis on necessities are helping the world's largest retailer grab new customers around the globe in a recession, while Target — with greater emphasis on trendy merchandise — has been struggling to hold on to its shoppers and is now turning to groceries for growth."Target is clearly making steps in the right direction," said Craig R. Johnson, president of consulting group Customer Growth Partners. "Meanwhile, Wal-Mart continues to raise the bar."According to the companies' recent annual reports, here's a breakdown of sales by merchandise categories for the latest fiscal year:—
Wal-Mart:
- Revenue for year ended Jan. 31: $405.6 billion
- Groceries: 49 percent
- Entertainment: 13 percent
- Furniture and electronics: 12 percent
- Apparel: 11 percent
- Health and wellness: 10 percent
- Home: 5 percent
Target:
- Revenue for year ended Jan. 31: $64.9 billion
- Consumables, including groceries and health and wellness: 37 percent
- Electronics, entertainment, sporting goods and toys: 22 percent
- Apparel and accessories: 20 percent
- Home furnishings and decor: 21 percent
So is it better to have all of your eggs in one basket such as Wal-mart or is it better to be diversified in sales such as Target.
10 comments:
I personally think that Wal-Mart has a head start on grabbing more attention for their low prices because that's what they've been advertising all along. Target on the other hand has been known to be more up-scale and their customers seem to be loyal to paying for the same products at a higher price (compared to most of Wal-Mart's prices), but also paying for the experience when they're shopping in Target. The economy has forced Target to turn to the lower prices for their customers, like Wal-Mart, or they simply wouldn't even be in the running anymore. With people losing jobs and taking pay cuts, customers don't have the pleasure of paying for a shopping experience anymore.
Megan Larson, Hour 4
I think walmart is going in a better direction than Target. People in this bad economy are gonna want to buy stuff in bulk for low prices. Target is forced to lower there prices to compete with Walmart, which is not there style. So even though Target is going to do better than usual, Walmart will still make more money. If the economy doesnt get better soon, there will be no more Target.
Wal - Mart is clearly making more profit, isnt that what it is all about? The stores are similar but Target Markets are slightly different. Walmart will do better in this economy and Target will suffer a bit with there smaller items such as food, house hold things etc. -Dan C. P.4
its better to do what walmart is doing in this current economic situation. even if walmart mkaes most of theyre money in grocerys they are still makin money.
Travis mccarthy
I believe that Wal-mart is on the better end. Obviously they are a larger business and make more money. They also are gaining more and more customers in the tough economic times. Therefore, I believe it is better to have all of the eggs in one-basket in this case.
Max B P4
I feel like Walmart has become more popular then Target. I believe this because I see Target heading more towards the trendy, better looking, high fashion type of clothes and feel while Walmart is keeping their feel of affordable inexspensive buys for this difficult time to buy things. I think Target thinks that people want that more high fashion, better brand buys but Walmart kept to their deal and know they are getting rewarded for it.
Andrea Kampa 4
I think Walmart is going to be better off than Target just because low prices is what Walmart has been all about since the beginning. You buy in bulk for low prices at Walmart, where as Target is a little more upscale, and that's why you pay a little more for their products.
Laura Jane Ries P3
During this economy, I think Wal-Mart has the better end because even though Target is not that much more really only pennies people do not think of it that way. When you go to Wal-Mart you know you are getting everything at the cheapest possible rate. Although, Target needs to keep up its upscale approach because I know of people that would not think of shopping at Wal-Mart and would be ashamed to do so. They have 2 different markets they approach on lifestyle (which is why Wal-Mart changed its slogan) but in this economy, Wal-Mart gets the better end of the deal because the unsure debatable people in the middle moved their shopping to Wal-Mart. So, if its working why not have all your eggs in one basket?
Kristen 4
Personally, I like Target a lot better mostly because of the cleanliness factor. I just don't feel right in a Walmart, but they do have very good prices and people know that. So which one is doing it better? I'd have to say walmart by far when looking at the numbers. If they're doing the best, their marketing is the best.
Meghan T. 4
Since Wal-Marts revenue is dramatically higher then Targets, wal mart is definately doing better. Although I feel that Target is nicer because of the shoppers and how clean it is maybe in other states its a different situation.
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