Not so long ago, shoppers flocked to Target stores in droves. However, the once-beloved brand has fallen in popularity over the past few years. Customer dissatisfaction is apparent in the chain’s continual decline in sales. This article examines why this is happening—and if anything can be done about it…
Target Trails Behind Its Biggest Competitors’ Stores
It is almost impossible to think about Target without thinking about its number-one competitor — Walmart. The two have been neck-and-neck for years trying to win the same customer base.
AND RIGHT NOW, WALMART HAS THE CLEAR LEAD…
The blue big-box chain has crushed Target in sales growth for 11 quarters in a row!
This is not entirely shocking when you consider that Walmart is the biggest retailer in the U.S.
Still, not only is Tar-jay losing to them in sales, but Amazon as well for discretionary goods. But, that hasn’t always been the case…
Why Consumers Are Falling Out of Love with Target Stores
As we mentioned earlier, Walmart’s chic counterpart used to be the public’s preferred retailer. Statistics and customer consensus showed people loved browsing Target for their affordable staples and varied inventory.
Presently, patrons allege that shopping at Target stores is a far cry from what it used to be…
Understaffed registers that result in long check-out lines…
Lack of variety in items and in-demand items being constantly sold out…
Or, worse those everyday products are locked behind glass.
This practice is done to prevent theft and is notoriously also used by Walmart.
Nevertheless, these unattractive attributes are probably caused by Target’s outdated modus operandi.
Could a Strategy Shift Turn Things Around?
The CEO of Target, Brian Cornell, summarized the weaknesses of the company in an investor call like this:
“THERE’S SOME MACRO SHORT-TERM HEADWINDS THAT WE’VE GOT TO EMBRACE AND UNDERSTAND.”
Via The Wall Street Journal
In layman’s terms, Target stores are not keeping up with what the current marketplace needs.
In the current economic climate, consumers are making fewer unnecessary purchases. This is a problem because the Target brand is built on “impulse buying.”
In contrast, Walmart focuses on essentials — namely, food. The corporation is the largest grocer in the United States.
By this fact alone, we can assess where the gap between the two retail juggernauts comes from.
Further, Target is still recovering from its product ordering catastrophe in stores. In short buying too much of what no one was buying prevented them from ordering in-demand inventory.
The good news is that these obstacles and shifts in strategy are not impossible. The brand just has to do it — quickly.
Be Great,
GCTV Staff
Disclaimer: This content is intended to be used for educational and informational purposes only. Individual results may vary. You should perform your own due diligence and seek the advice from a professional to verify any information on our website or materials that you are relying upon if you choose to make an investment or business decision. Investment, real estate, and business involve great risk and there is no guarantee of performance or results.We are not attorneys, investment advisers, accountants, tax professionals or financial advisers and any of the content presented should not be taken as professional advice. We recommend seeking the advice of a financial professional before you invest, and we accept no liability whatsoever for any loss or damage you may incur.
