...Target vs What exactly are discounters? Discount stores which offers products at a lower price compared to many retail stores. Due to efficient distribution methods, discount stores are able to lower their prices Walmart and Target are both discounters. In times of economic recession, both focus solely on lowering prices. Target emphasises on the “Pay less” instead of the “expect more”. Walmart guarantees lowest prices. However, they target different customers. A study shows that Walmart’s customers’ average household income ranges about 30-60k a year. Walmart heavily emphasises its low prices. In contrast, Target offers more luxurious goods. Target caters more affluent shoppers. The average household income of Target customers is 64k a year. Target is by no means the most expensive retailer in the country, however, it is more expensive in comparison to it’s biggest rivals. To illustrate this, while Walmart sells basic no brand t-shirts, shorts, pyjamas, Target offers designer clothes with brands. Unlike Walmart, Target does not sell firearms and tobacco It depends on whether one’s preferences of inferior, or slightly more luxury goods, and is one willing to play slightly more for a comfortable shopping experience. - ex: Wider isles, cleaner, more comfortable atmosphere. In January 2014, Kantar retail ran another studying to look into the price differences between walmart and target. This study was measured on a ‘basket full of same stock keeping units’. Results...
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...Case Study: Target Laval University 01/10/2013 To understand the struggles of Target during the economic crisis that started in 2008, one has to comprehend the relationship Target has with the biggest discount retailer in the United States; Walmart. The two stores are very often paralleled, so much that when one store is brought up, the other one is also brought up for a quick comparison. However, they still have one big difference in the fact that Target is considered to be more up scaled. Often described as “Cheap Chic”, the products at Target are of higher quality for a slightly higher price, while still staying affordable. Before the economic crisis, Target sales were always increasing and the business was growing at a faster rate than Walmart. Target’s profits and sales were increasing from one period to another, while Walmart was basically lagging; not decreasing in sales but not increasing neither. That situation alerted the biggest discount retailer so much that its top manager decided to change their marketing strategy and copy Target. They started to have more and more designer clothing and house furniture lines as well as more gourmet and organic food in its aisles. The well known “Always low prices. Always.” slogan was even changed to “Save money. Live better.” That new catch phrase was designed to take away the...
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...Interpreting Financial Results: Walmart vs. Target FIN/571 July 27, 2014 John Kushner Abstract Walmart and Target both are discount retail one stop monster shops, but they each cater to different customers. Walmart, which according to CBS News Money Watch in a November 2012 episode says its customers' average household income ranges from $30,000 to $60,000, hammers its low-price message and focuses on stocking basics like tee shirts and underwear along with household goods. But Target, whose customers have a median household income of $64,000 a year, is known for carrying discounted designer clothes and home decor under the same roof as detergent and dishwashing liquid. Of the two discounters, I prefer Target, I personally name this, my one hundred dollar store. No matter the trip, the minimum I spend per visit is $100 dollars. The purpose of this paper is to perform a horizontal analysis and review Walmart’s financial statements from the past three years and then interpret those results against company historical data as well as industry benchmarks as compared to its biggest competitor, Target. This paper will be interpreting financial results: Walmart vs. Target over the last three (3) years looking at Balance Sheet, Cash Flow and Income Statements. Interpreting Financial Results: Walmart vs. Target For the first part of this assignment and review of Walmart’s finances, I will highlight the...
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...----------------------------------- Jul 31, 2005 Target versus Walmart, Walmart Competitive Analysis ----------------------------------- Can Target Surpass Walmart in Market Share? TARGET STORES, the crown jewel of the Target Corporation, would appear to have everything: zippy ads, fast-growing sales and exclusive merchandise that people rave about. But inside the headquarters tower here, where Target's decisions are made, no one is about to relax. With Kmart hobbled by bankruptcy, it is Target that now gets the attention of Wal-Mart Stores, the biggest retailer in the land and the biggest company, too. Every successful step that Target takes -- signing designers to make baby bottles and little black dresses, moving deeper into the grocery business, persuading more and more upper-middle-class shoppers to become upper-middle-class bargain hunters -- brings it into closer confrontation with the $218 billion behemoth that is Wal-Mart. At stake are the wallets of the growing number of consumers who shop discount stores by choice. In most respects, the Target Corporation -- which also owns the Marshall Field's and Mervyn's department stores -- is performing spectacularly well. It reported sales of $39.9 billion for the most recent fiscal year, mostly from its 1,100 Target stores, pushing it ahead of the beleaguered Kmart to make Target the nation's second-biggest discounter. Analysts are impressed with its earnings, which soared 36 percent, to $345 million,...
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...Wal-Mart VS Target Group Analysis [Type the author name] 4/21/2013 [A group analysis of the two top retailers; Wal-Mart and Target. This paper will discuss the SWOT of both companies as well as give an in depth analysis of both companies as big competitors.] 1962 was the year of creation. That is when two great companies were founded, Target and Wal-Mart. Target opening saying it’s a “new idea in discount stores”. Wal-Mart was the retailer who “focused on helping customers and communities save money and live better”. The two companies opened with the same ideas in mind. Sam Walton opened Wal-Mart’s first store in Rogers, Arkansas while Target was opened in Roseville, Minnesota by the Dayton Company. Later that year Target opened three more stores in St. Louis Park, Crystal and Duluth, Minnesota. Over the years the companies have managed to create household names for themselves that have lasted for over 50 years. Target and Wal-Mart have many things about their companies in common, strategy isn’t one of them. These companies seem to take two different approaches and it works in both persons favor. They both are leaders in different aspects therefor making them great competitors. Wal-Mart has 3 different strategies. Focus strategy is usually defined as: focusing on offering products and services to a particular market segment or buyer group, within a segment of a product line, and/ or to a specific geographic market. The differentiation strategy is defined...
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...Project: Wal-Mart v. Target Target A. Background -Target is an upscale discounter that provides high-quality, trendy products, at attractive prices. The Company prides itself on having clean, spacious, guest-friendly stores. -Target operates stores under three main business segments; Target, SuperTarget, and its online business (Target.com). -In total the company operates 1613 regular Target strores and 218 SuperTargets stores in 47 states which compete with Wal-Mart and Super Wal-Mart. In addition to their retail stores, SuperTargets add upscale grocery shopping, photo processing, pharmacies, and Food Avenues Restaurants. http://investors.target.com/phoenix.zhtml?c=65828&p=irol-homeProfile B. History -Target was founded from three main company’s; Marshall Field & Company, D. L Hudson Company, and Dayton Company. George D. Dayton was an entrepreneur who tried his hand in banking, investments, and other business ventures before opening his first retail store. In 1903 Dayton built a six-story building in which a Minneapolis dry-goods store began operating out of. Mr. Dayton took over the business and renamed it The Dayton Dry Goods Company. He would lead the company until the 1960’s when he formed the Target Corporation. Dayton was renamed Target only a few years ago. It was the Dayton Hudson Corporation until fairly recently. http://www.daytonhouse.org/HouseHistory/Daytons/tabid/200/Default.aspx -Over the next 40 years, Target gradually expanded from...
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...| Wal-Mart vs. Target | Mission , Vision, Social Responsibility, and Strategic Planning | | Renita Springs | 3/6/2012 | | Wal-Mart and Target are both great retail stores to go and find a good bang for your buck shopping experience. After researching both companies, it appears they have the same ideas as a mission, saving the customer money. Wal-Mart Mission statement reads; “ If we work together “ we’ll lower cost of living for everyone.. We’ll give the world and opportunity to see what it’s like to save and have a better life.” (http://walmartstores.com/AboutUs/9538.aspx) Target’s Mission Statement; “To make Target the preferred shopping destination for our guest by delivering outstanding value , continuous innovation and an exceptional guest experience by consistently fulfilling our Expect more, Payless brand promise.” (http://sites.target.com/site/en/company/page.jsp?contentId=WCMP04-031699) A comparison in the mission statements implies that both companies show some definition on the purpose of the organization, to save money for the customers; however, Wal-Mart lacks how the company helps make its strategic decision. The Wal-Mart statement is too vague. It should be broadened to give detail on how they plan to do save the customer money and have a better life. Target’s purpose of the organization and strategic plan is made clear through reading the mission statement. Target speaks more in depth on how they plan to do this for the customer but not...
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... Salvador Rameriz FROM: xxx DATE: December 8, 2013 SUBJECT: Charitable Giving of Target and Walmart The aim of this project was to compare and contrast the charitable practices between Target Corporation and Walmart. This report presents the charitable giving of these two corporations. For the past few years, both Target and Walmart had become major contributors that give back to the community. Introduction The Target Corporation was founded by George Dayton in 1902 and headquartered in Minneapolis, Minnesota. It is the second largest discount retailer in the United States and its first Target store was opened in 1962 in Roseville, Minnesota (Target Corporation, 2013). The company has been praised for giving back to the community with an average of 5 percent of pretax earnings consistently each year, in fat and in lean times. Wal-Mart Stores, Inc., branded as Walmart, is one of the largest retailers in the world. The company was founded by Sam Walton in 1962, incorporated on October 31, 1969 and headquartered in Bentonville, Arkansas. After the death of its founder in 1992, Walmart and Walmart Foundation dramatically increased charitable giving (Walmart, 2013). Target Corporation Charitable Giving and Community Services Target Corporation is consistently ranked as one of the most philanthropic companies in the U.S. As the company grows, so does their work in communities. The company...
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...Price waterhouse cooper | Qualitative Analysis of Target and Wal-Mart | | | Sophia Feng | 12/2/2013 | | Contents Introduction 2 Background 2 Figure 1: Comparative Statistics 4 Figure 2: Wal-Mart’s Stock Price from Year to Date 4 Figure 3: Target’s Stock Price from Year to Date 5 Companies’ success stories 5 Comparative Advantages 6 Problems with internal control 6 Figure 4: Document about Hispanic Employees 8 Future Challenges 8 Conclusion 9 Work Cited 10 Introduction Every year the management of Price Waterhouse Cooper will choose from a list of ten successful companies to invest one-third of their company’s profit into the stock market. From these ten companies, a team of people will select two companies that are in the same industry that they believe would be worth investing in. From these two companies, Price Waterhouse will have a team of researchers to do an extensive research on the two companies’ qualitative aspects. This year Price Waterhouse would either invest their money in Target’s or Wal-Mart’s stocks. Both these two retail companies are very successful that still continues to grow each day because of their low and irresistible prices on their merchandises. Not only do they provide their consumers with these prices, but their offer a wide range of merchandises from garden supplies to toddlers’ clothing. The CEO of Price Waterhouse, Eliza Smith, have assigned the accounting department with the task of deciding which...
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...Walmart/Target Study Case Questions for discussion: 1. What microenvironmental factors have affected Target’s performance over the past few years? Any business faces several microenivronmental factors that would affect their performance, which is a self-contained microenvironment that stands alone but somehow interacts with the other factors. Some of them affect the business directly, and the others affect the business in an indirect way. The factors that affect Walmart are Target itself, suppliers, marketing intermediaries, customers and competitors. All of these factors have contributed one way or the other in the performance of Walmart. 2. What macroenvironmental factors have affected Target’s performance during that period? Target and Walmart were always thought of by the consumer as the discount retail brands, and the comparison between the two has been going on for as long as they have been in the market. Even though Walmart was associated with the cheaper stuff, Target was known for its sense in style and fashion. Target has always been the one with the higher revenues until recently. That change of revenues is affected by a couple of macroenvironmental factors. Those factors are as following: * Economic: Recession was a major factor in the drops of revenues at Target. As many of their customers have lost their jobs and accordingly, have a much less income. That made Walmart more attractive as they promote for the cheaper products...
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...Comparing Walmart and Target Capital Expenditures University Comparing Walmart and Target Capital Expenditures In every business there is always a need for capital expenditures. Capital Expenditures can be very beneficial and can also differentiate the numbers from rival companies. According to readings “capital expenses are extensive and mostly hold a company’s substantial amount of money. Companies invest in prime property, plant, machinery, buildings and other forms of fixed assets, which also act as securities for the company. I chose to look up the Capital Expenditures of two companies that are known in many households: Walmart and Target. The annual report of mutually businesses over the past three years will be examined. This paper will examine and compare the reports and the amount of capital spending over the past three years while defining how the amount of capital spending remains constant or if it’s altered. Capital expenditures can determine the major financial decisions that a company must make in order to acquire a sound investment. This paper will attempt to expand on the clarification of capital expenditure and the impact it can have on the organization’s debt capacities and capital structures. As stated by Byrd and associates in the text, there should be a comparison of the level of capital spending across the two firms. The paper will further point out how the spending was similar and/or different and speculate why the similarities or differences might...
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...compare two periods of Walmart Inc., and one period of Target to revise the financial performance of those two companies, the ratios are: Current ratio Walmart Target 2014 2013 2013 Current Assets 61,185,000 59,940,000 16,388,000 Current Liabilities 69,345,000 71,818,000 14,031,000 0.88 0.83 1.17 We can see that Walmart have current ratio below one meaning that all existing current assets will not be sufficient to pay off the current debt. Target have a better ratio than Walmart it means they have 1.17 of current assets of every dollars to pay off their current liabilities. Quick ratio Walmart Target Current assets-inventory 16,327,000 16,137,000 8,485,000 Current liabilities 69,345,000 71,818,000 14,031,000 0.24 0.22 0.60 This ratio shows that Walmart have only 0.24 to pay every dollar of current debt, it means it does not include the inventory to pay off the current liabilities. In this case the ratio is better than Walmart even though is not at least equals to 1 it is in better shape than Walmart having 0.60 compares to 0.22 in the year 2013. Inventory Turnover Walmart Target Cost of goods sold 358,069,000 352,297,000 50,568,000 Inventory 44,858,000 43,803,000 7,903,000 7.98 8.04 6.40 This ratio shows the numbers of times the inventory turned in a year calendar. In this case Walmart have a better position than Target showing a better ratio meaning that Walmart turns the inventory more...
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...comparison Walmart and Target websites Factor 1: Speed Speed matters when it comes to the quality of a website. It is the rate at which a website loads fast enough for customers to perform their transactions. It keeps users happy and engaged by providing a fast performing website. Using gtmetrics.com to analyze these two websites, both website loads at equal pace. Target also surpasses Walmart in request counts, page Sizes and page load times. In summary, the Target website is better than Home Depot when compared by speed. Factor 2: Appealing design Simply having a website is not enough and another important factor in building traffic to your website is the appearance of your website. I find the Walmart website more appealing than Target. The use of pictures to denote different departmental categories and the layout design makes Walmart website more attractive. Although, both website had their sale items displayed in pictures, Walmart has pictures to denote both regular and sale items. Walmart uses a color that makes user’s experience more fascinating than that of Target. Navigation on the Walmart website is easier with these aforementioned factors when compared to the Target website. Factor 3: Audience Overview When comparing both Walmart and Target websites, both websites are ranked 7/10 by Google but Alexa ranking puts the Walmart website ahead of Target. In my further analysis, more users visit the Walmart website. The traffic on the Walmart website...
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...Financial Analysis of Target & Walmart Corporation Columbia College ABSTRACT This paper is a brief background and historical overview as well as financial analysis of Walmart and Target public incorporated companies operating in the retail industry. The financial analysis of both companies using current ratio, net income margin on sales and book value per share reflect relative stable companies with strong balance sheet and low exposure to equity investment risk. Although both companies appear to be fundamentally strong and stable, however, Target seems to be better than Walmart in the context of profitability, liquidity and equity risk exposure as reflected in the calculations. Between 2009 and 2013, Target consistently outperformed Walmart in terms of liquidity position, profitability as well as risk coverage measured by book value per share. INTRODUCTION Walmart is a well-known in the industry when it comes to retail business across the globe. It operates many retail stores in various formats around globally. The company was founded by ”Sam Walton in 1962, incorporated on October 31, 1969, and started trading as public quoted company on the New York Stock Exchange in 1972, and it currently has 30% market share in the America retail industry” (Reuters). It is headquartered in Bentonville, Arkansas. Two of their fundamental operating principles are Everyday Low Cost (EDLC) and Everyday Low Price (EDLP). These two principles allowed the company to build a foundation...
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...of America’s population which is 159.4 million shops at Walmart. The very first Walmart was opened on July 2, 1962 in Rogers, Arkansas by Sam Walters. Mr. Walters was born in Oklahoma in 1918. When he was twenty-four he joined the military. When his service ended in 1945 he moved to Newport and eventually open his own variety of stores including Walmart. Target is a store similar to Walmart to but is quite different in certain ways. Target was founded in 1902 by George Draper Dayton. George Dayton was an 1881 native and was born Clifton Springs, NY. He hoped to become a pastor, but could not resist being in the business world. He married Emma Chadwick in 1878...
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