Who is Targets Competition & Why: As a leading competitor in the discount department store, Target holds themselves to a high standard in their market serving their customers with a variety of products at a good price. According to Hoovers.com Company Index of Target, there are 29 companies who are in range of being called competition. When narrowing the list, three main companies came up that are in direct competition, Wal-Mart, Kmart and Costco.
Target: Since the day they opened their stores, they have tried to position themselves with the slogan “Expect More, Pay Less” brand promise. Through their national campaigns and memorable commercials, they have been able to keep that promise and maintain a loyal customer base. Target has, and continues to, pull the bargain-hunting customers from a low cost perspective to the fashionable but also practically priced level of shopping. While Target has held onto its customer base, some are turned away from the prices that may be associated with the merchandise leading their main competitor, Wal-Mart, to a bigger advantage and customer base.
Recently, to grow as a company and also combat their competition, Target has acquired roughly 200 stores in Canada to being its international expansion.
Wal-Mart: The largest of the four and the biggest competitor, has reported their annual sales at around $469.16 Billion for the year 2012. With their popularity and customer base looking for the lowest possible cost with the most bang for its buck, Wal-Mart has continued to increase its sales annually.
Since the recession, Target has attempted to change its ways. Bringing in more groceries items to increase recession proof products has helped this change. However, Wal-mart has been changing too. In recent years, Wal-Mart has changed it logo and motto from “Always Low Prices. Always” to “Save Money, Live Better.” This change has allowed the company to expand its products, and therefore, its target customers and market share in an attempt to pull more customers away from competitors such as Target.
Costco Wholesale: The second largest of the four at $99.14 Billion for the same year. Costco has been on the rise, with expansion and strategically closing some stores, they have been able to grow and learn from the market. While Costco charges a membership fee, they believe that with this fee, they can bring in a dedicated customer base. Also, as the expansion of their grocery department, with sales accounting for 55% of the total sales in 2012, their annual renewal rate is at 90% annually in North America and 86% worldwide.
Target may not have a membership card, but they have worked with TD Bank (as of March 13th) to continue use of a red branded Target Visa Card, Credit Card, and a Target Card – which all act as a form of a membership card with a 5% off any purchase. (Add in screenshot of cards) Target also offers deals such as free shipping for their online customer base.
Kmart: Kmart hold an…