Target is the second largest retail chain in the world. With stores in almost every state, offices around the globe, and a new initiative for Target Canada, Target has established its place as a global leader in retail. To stay ahead Target must continually look for ways to expand on its promise to customers to Expect More, Pay Less.
Staying diversified and relevant to Target’s vast market is the key to continuing success and growth. I suggest that variety in merchandising is the most important thing Target can improve to address the changes in the current market. After laying out Target’s position in the market, it will be clear what can be done to add further variety to Target’s merchandise.
• Target has a strong presence in the U.S. and has stores in 49 states
• Target has previous partnerships with well-known fashion designers
• Target has established itself as a retailer that can offer clothes people want to wear at a price anyone can afford
• Walmart has a much larger market share than Target and has stores around the globe
• Target still cant get prices low enough to compete with big-box retailers like Walmart and Cost Co
• Some consumers perceive Target as being too expensive and high end
• Consumers see Target as a fashionable place to shop and look forward to new lines it comes out with
• As communities continue to diversify, Target can offer more variety through their presence nationwide
• Target has such a large market that it can segment by region
• Fashion trends change constantly and are difficult to predict
• Different regions have different fashion desires
• Diversifying clothing options will reduce Target’s economies of scale pricing
Target is stuck in a place where it wants to expand its clothing department but must be careful to preserve the value of low pricing. With the environment in the U.S. becoming more diversified, Target can get creative with the way it...