Wal-Mart takes aim at hitting the Target

Reuters ^ | 6/16/05 | Emily Kaiser

[Tumbleweed_Connection]

Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research), which has gained a reputation for leaving opponents limping into bankruptcy court, is taking on Target Corp. (TGT.N: Quote, Profile, Research) in a fight that it just might lose.

Wal-Mart, the No. 1 retailer, is widening its array of stylish-but-cheap goods in hopes of winning over middle-income customers, putting it head-to-head with a rival that has proved it can compete and thrive against a company six times its size.

"Can Wal-Mart make merchandise improvements that will drive incremental sales? Absolutely," said Darrell Rigby, head of the global retail practice at consultants Bain & Co. "Can Wal-Mart beat Target at Target's game? I doubt it."

Target's secret is to match Wal-Mart's prices on commodity items such as food and cleaning supplies, and then use sales of trendy-but-affordable designer merchandise to boost profits.

The strategy seems to be working. For the first quarter ended on April 30, Target turned in a strong 6.2 percent sales gain at stores open at least a year. That was more than double the same-store sales increase for Wal-Mart in the United States.

Wall Street has noticed the discrepancy, rewarding Target's shares with a higher valuation than Wal-Mart's. Target trades at nearly 21 times earnings forecasts for the next fiscal year, compared with a multiple of about 18 for Wal-Mart, according to Reuters Estimates.

The sales gap isn't lost on Wal-Mart executives. Mike Duke, head of the company's U.S. discount stores, said visits to Target stores are the No. 3 use of his time, behind meeting with Wal-Mart employees and customers.

"I'll be straight up -- they are a great competitor," Duke said in a presentation to analysts this month.

WAL-MART CHEAP CHIC?

Now Wal-Mart wants to bring in its own "cheap chic" goods, using the British design team behind its George apparel line to come up with more fashionable offerings.

A Target spokeswoman said the retailer is confident of its strategy and declined to comment on Wal-Mart's plans...

[ExpatGator]

Yeah, and then there won't be any stores to work or shop at and that huge demand will go unfilled and we will all go around naked and hungry with no toothpaste. All because the market rewarded Wal-Mart for providing cheaper goods. Oh my, the gods must be angry at us.

Wal-Mart's coming wobble, and it is coming, will not cause unemployment. Other stores are causing the Wal-Mart contraction and those stores will hire those $7.05 employees, just like WallyWorld hired the employees of the outmoded "Mom and Pop" stores. Heck, Mom and Pop are the Wally door greeters.

[Tumbleweed_Connection]

I have not seen either. The reason I am on WMart's team is in light of the radical liberal malignity towards their wonderful success.

[Tumbleweed_Connection]

I switched from IE to NScape and sometimes cannot pull down the print URL. I no longer have all of the IE "germs" but I am working on this problem. Thanks for posting the remainder.

[lastchance]

So what part of Florida do you live in? You are right about the ammo. The only place I could find a BB gun for my son was Walmart, same with Paintball stuff ( at a price that did not break the bank).
I agree that online shopping offers great opportunity. I have discovered some great deals on Ebay. Not all items are auction sales, they have online stores too.
I made the mistake one time of shopping at Target in a red shirt and khaki shorts. I will never do that again. I was mistaken for service help at least a dozen times. And I don't think everyone believed me when I told them I did not work there.

[Final Authority]

WRT to reply #4, I observe that if one wants to save the cost of learning what a third world country is like all one has to do is visit the WalMart in Salem, NH on any Saturday. NH is about 98% white but WalMart on these days is about 98% other than white and no one speaks English. The body odor is something else, the number of overweight, no, really fat people is something to see. The cars out in the lot are all from Massachusetts and would not pass a safety inspection in NH which makes me believe that they are illegitimately on the road through some nefarious process. We know that most of them are not insured and many, since they are criminal aliens, are not licensed. Much of what is spent is welfare debit card money and I was told by a WalMart cashier that they are not to verify the ID of bearers anymore because in the past they have uncovered much fraud that it put them in the position of turning in customers, so now the policy is like the Sgt. on Hogan's Heroes, "I see nothing, nothing".

So save your airfare, the cost of a passport, hotel room and still sleep in your own bed. Come to Salem, NH and visit what the USA will be in 25 years. Just another third world, stinking, hellhole of what passes for humanity.

[Final Authority]

I went to a Marshall's clearance center in NH and purchased a couple of real Hawaiian shirts at at $14 bucks that have designer labels, made in USA, (I presume Hawaii since I have shirts like these already) and are of very good quality.

I used to buy shirts at WalMart, the button down dress oxfords that they sold for about $17 and were made in the USA. WalMart bought out the failing Hathaway shirt co. in Maine and guaranteed the jobs for several years but then fired everybody and closed the place down, Now, I can still get these shirts at $14 now but they are made in Bangladesh or some hellhole and they are just the cheapest, crappy, made shirt one could ever wear. You could not tempt me to buy one at any price.

[two23]

I'm in the great state of (Northeast) GA! (former Floridian).
We buy .22's at walmart, and my 223's and all our airgun cartridges, BB's and pellets, and buy the bigger stuff from local gunshop or (cheaperthandirt.com). I do like to give some of my ammo business to walmart just to support their pro 2nd-pro hunting tradition, in a hope that they don't go the way k-mart did.
mr. two buys from ebay more than I do. I've been online shopping for years and find it very convenient, because what I spend on shipping, would equal the gas, time, and aggrivation I would spend driving to a larger city. Christmas shopping online is great...it comes to my door. AND, I can order gifts for family in Florida and have it shipped directly to them.
LOL about wearing red and khaki to target! But I have found that it doesn't matter, people will still ask "do you work here?", especially seniors, I just say "no, but I may be able to help you, whatcha lookin' fer?".

[JoeGar]

Locally here, Target competes with Wal-Mart by providing good parking and clean, well-lit stores. I'd rather have a root canal than to fight the traffic in our Wal-Mart's parking lot.

[lastchance]

My in laws have a vacation cabin in Mineral Bluff. That near your part of the woods? Where in Fl did you live?

[Frank_Discussion]

"Trust me, never ever buy clothes at Target..."

I have had no problems.

[Frank_Discussion]

Walmart has some things that are good, though, to be fair. I help a local scout troop, and I've bought quite a bit of minor camping gear there, no problems.

But the clothes? Oh yeah, a threadbare situation waiting to happen.

[Frank_Discussion]

Frank, not Francis, Discussion. I would look horrible in a size 3X chemise, and forget about a bra... or a manzierre...

But if your post was for general distribution and not just to me, thanks!

:)

[altura]

I love Wal-Mart!

My motto is, if Wal-Mart doesn't have it, you don't need it.

Apparently there are areas of the country where Wal-Mart stores are run down and trashy, but I've never encountered that.

The worst clutter in Wal-Mart is the people, many of them fat and most of them accompanied by loud and energetic children who like to run in stores, usually shrieking while doing so. This is unavoidable in the summer, but in the winter during school hours, it's better.

These people, while unattractive and in my way, are seeking what I seek. Everything under the same roof and cheap prices. I've never encountered a rude clerk in the store--I'm sure these people exist, like the craters on the moon, I've never seen them.

I wouldn't go there for designer clothes, but then I never go anywhere for designer clothes. All my destinations are well served by shorts and t-shirts in the summer and jeans and t-shirts in the winter.

I know hating Wal-Mart is in the best snob tradition, but what other reason can there be for hating it? They don't actually force anyone into vans and take you there, not releasing you until you've bought light globes and chicken livers.

[Ciexyz]

Yes, my post was for general distribution. I recommend catalogue shopping esp. for first-timers who have never tried it before.

[AnAmericanMother]

I absolutely agree. Except for really weird specialty items, I buy almost all my camping, hunting and outdoorsy sort of stuff at WalMart. (They don't have remote triggers for duck wingers, for example! but they have just about anything else.)

[AnAmericanMother]

Aw, I don't hate WalMart. I do shop there for some items. It does have its drawbacks though.

I have found the clothing (not designer clothing - just any clothing) to be simply shoddy - especially the boys casual clothing. And our local store IS dirty and poorly kept. And I wouldn't know if there was a rude sales clerk on the floor, because I've never been able to find one . . . < g >

[jimbo123]

The CEO of Target Corp is a Republican:

ULRICH, ROBERT MR
MINNEAPOLIS,MN 55403
TARGET CORPORATION/RETAIL
8/19/2003
$2,000
Bush, George W

ULRICH, ROBERT MR
MINNEAPOLIS,MN 55403
TARGET CORPORATION
3/5/2004
$1,000
Bush, George W

ULRICH, ROBERT MR
MINNEAPOLIS,MN 55403
TARGET CORPORATION/RETAIL
2/27/2004
$1,000
Bush, George W

[NCLaw441]

...every square inch of it's stores...


I guess a Wal-Mart thread is as good a place as any to be a grammar a$$hole. "It's" means "it is." When you want possessive, it's "its" wihout an apostrophe. Don't hate me, this is just a pet peeve....

[Frank_Discussion]

Hey, I don't hate you... but I'm a litle irritated you're bugging me about a quote I made of someone else to which I susbsequently replied...

Good Morning?

[Frank_Discussion]

"And I wouldn't know if there was a rude sales clerk on the floor, because I've never been able to find one . . . < g >"

I remember once CHASING a WalMart Associate, who was determinedly trying to act like I wasn't racing behind him! I was pretty irritated at the time, but I laugh about it now...