Thursday, June 4, 2009

Target Corporation strikes at the heart of Wal-Mart Inc.

In March 2009, Target Corporation, another top American retail chain, and one of the major rivals of Wal-Mart, opened their new retail store in Arkansas which came as a major surprise to many people. Arkansas is considered to be the “heart land” of Wal-Mart Inc., the retail giant. The new Target retail store is seven minutes away from the first Wal-Mart Store built in 1962 and twenty minutes drive (without traffic) from the headquarters of Wal-Mart Inc. in Bentonville. The first question that came to many people’s mind was “Will Target be able to attract people in its store?” Well, after three months of operation, the answer is a big YES. The store is not only attracting ordinary shoppers but also Wal-Mart executives as well.

The new Target stroing is going strong on grocery sales compared to Wal-Mart which offers fresh foods. The grocery section of Target stretches over an area of 136,666 square feet and sales only “frozen, canned and packaged foods.” Still, shoppers like the store because it comes as a suitable alternative to them. Even Wal-Mart executives frequently visit the store.

At the end of the day, Target store manager Chuck Simmons admits of a mental pressure as they are operating on Wal-Mart’s turf and comparatively Wal-Mart store gets more shopper than their’s. The company posted a slump of 6.1% in its May sales and it predicts a “flat sale upto 3%” in its second quarter. At the end of the day, it is all a healthy competition and that is what we would like to see more.

Related articles:


No comments:

Post a Comment