Walmart vs Target

Financial Management – FINC 850

Final Project

Section 1 (Company Descriptions)

Target Corporation is the United States second largest discount retailer. The company owns and operates over 150 stores throughout the US and Canada. The stores offer a variety of discount items such as clothing, groceries, electronics, household goods and furniture among other things. Many of the stores today also offer photo services, a pharmacy, target cafes as well as an in store Starbucks. There are four types of target stores across the US which include, Target Greatland, Super Target, Urban Target and City Target that are customized to fit the needs of the local customers and area. Target Corporation also owns and operates numerous distribution centers across the country that provide stores with merchandise and fresh produce as needed.

Wal-Mart is the United States leading discount retailer and the world’s largest retailer. Wal-Mart has over 8,500 stores in fifteen countries across the world. Wal-Mart is a public company but is still considered family owned because of the Walton family, who owns over 47% of the company’s stock. Walmart operates with a lowest price business strategy. Wal-Mart stores offer the lowest retail prices of discount and name brands goods worldwide. Walmart keeps prices low by maintaining majority market share and operating at the cheapest levels possible.

There are several other discount retailer competitors which include Kmart, ShopKo and Mejier. Target is able to differentiate itself through its image with better quality and trendier options compared to competitors. Target is sometimes perceived to be slightly more expensive then competitors such as Wal-Mart, however, through in store promotions and Target Card promotions their pricing is competitive. Target goes after younger, more educated and slightly better off consumer’s compared to their competitors. Target often features limited time exclusive high end designer products that are made...