Target is an upscale department retailer; similar to Walmart, but known for being a bit nicer with prices just a smidge higher. They offer a variety of products such as bath and beauty items, clothing, groceries, electronics, etc. The first store was opened in 1902 by founder George Draper Dayton (originally named Dayton Dry Goods Company) and now there are 1,801 stores in the U.S. and 366,000 team members worldwide. The Target Corporation is headquartered in the U.S. with some locations in India as well. From 1960-1962 Dayton’s transformed into Target, the name we know today.
“Department stores retail a broad range of general merchandise, such as apparel, jewelry, cosmetics, home furnishings, general household products, toys, appliances and sporting goods. Discount department stores, which are also included in this industry, retail similar lines of goods at low prices.” The department store industry generates annual revenue of $166 billion dollars and is decreasing at a rate of 4.1%. This decrease is happening because online retailers are able to sell items at a cheaper price and more conveniently than traditional retail stores. Still, the department store industry is a large commodity and employs 988,587 people in the U.S.
Target’s top competitors are Walmart and Costco. “Wal-Mart (NYSE:WMT), the biggest U.S. discount retailer, holds a market cap of $187.9 billion and Costco Wholesale Corp. has a market cap of $35.4 billion. Target Corporation [has] a market cap of $34.6 billion.” All of these companies gained revenue in 2010; however, Target grew the slowest of the three. Target has an advantage over its competitors with its brand recognition in America and being known for products of higher quality. In contrast, Target lacks a presence in global markets, has higher prices than Walmart, and faces outside threats from increased regulations on credit cards, product similarities, stronger rivalry from smaller drug stores offering produce, and lower consumer spending. Because Target is only located in America, they rely heavily on the U.S.’s Gross Domestic Product and Disposable Personal Income. This being said: if the U.S. economy is bad; Walmart and Costco can gain from their foreign markets, but Target experiences a larger loss proportionally.
Market Situation The Target Clinic will be marketed specifically to people that live busy lives and need convenience. Also, with a large portion of our country obtaining health insurance due to the Patient Protection and Affordable Care Act 2011, more people will be going to doctors for minor illnesses and treatments and the Target Clinic is perfect for these situations.
An article at alternet.org explains that the way humans live has changed dramatically and, especially with technological advances, has become very fast-paced. “Time poverty is now a recognized psychological and social stressor. In a speeded-up, highly complex society, there just isn't enough time for everything.” Target may not be able to change the way the world works, but if it can give some time back to its consumers by making routine things more convenient, they can relieve stress for customers. Marketing for this clinic will be targeted toward people with busy lives that do not have time to wait for a primary care physician. There is a shortage of these doctors currently, which means longer wait times and less availability. “By the end of open enrollment 2015, 11.7 million were enrolled in state and federal marketplaces. 5.7 million stayed on their parents plan. Over 10.8 million enrolled in Medicaid or CHIP.” With this many people gaining insurance, there will be more people in the doctors’ offices for minor illnesses and treatments that they may have not bothered with until they had insurance. “This should benefit independent clinics such as MinuteClinic, operated by nurse practitioners and physician assistants who utilize recognized protocols to diagnose and treat minor health…