Target's three-step strategy to fight Amazon and Walmart pays off

[ad_1]

<div _ngcontent-c14 = "" innerhtml = "

Target has recently fought two wars. One against the online giant Amazon, and another against the brick-and-mortar gorilla, Walmart.

And it's a winner.

"Target has every reason to fail right now," said John Zolidis, equity analyst. "The company is facing a trend of dropping in-store purchases." Its major competitors aggressively spend to take shares. "The time is still bad." However, Target reports compositions exceeding those of most other retailers. & nbsp; The company reports a positive inflection of margins. & nbsp; It beats analysts' estimates and its outlook looks secure. "

It's the music of Wall Street bulls that has pushed Target's shares up faster than Amazon and Walmart figures.

How did Target do it? With a three-step strategy that aligns the capabilities and resources of the company with its goals in the new retail landscape.

First of all, it's the positioning. According to Zolidis, Target has focused its market on its main customers, young families. "Target is not trying to be everything for everyone," he says. Like Walmart, that is to say, it has extended the range of its products to that of Amazon.

"TGT focuses instead on its main customers, namely young families," he continues. "Target's strategy is to offer a range tailored to the needs of this group, at a low price, and differentiated and complemented by a broad selection of private label products, particularly in the categories of apparel and discretionary homes."

* Whole foods

Source: Finance.yahoo.com 30/05/2019

Secondly, it is investing in technology and improving stores to increase its capacity to provide better services. "Target is benefiting from its 2017 acquisition of the new Shipt grocery delivery company Inc. in 2017," said Haris Anwar, senior analyst at the Global Capital Markets Platform & nbsp;Investing.com. "The retailer is now offering consumers the ability to order online and pick up in store."

Then there is the rationalization of its brick and mortar operations, and the redevelopment of the stores. "In terms of physical activity, Target benefits from an improved supply chain and its efforts to intelligently rearrange stores and create new brands," says Anwar. The retailer also quickly seized customers of some of the big brands that failed to survive in this harsh environment, such as Toys "R" Us. "

Third, it's innovation – Target has launched new product lines. "Target has also managed to make a difference when it comes to fashion," Anwar adds. "It has launched new brands for intimate apparel, nightwear and essential household items, and plans to add another brand to beach and pool products. These initiatives make the retailer stand out from Walmart. "

Zolidis is optimistic about Target's future. "Starting with 1QFY19, we think it's harder to ignore Target's outperformance in the first quarter," he said. "At the same time, margins are shifting positively, reflecting the many years of investment and positioning of the company. Although the tariff and macroeconomic risks remain, we find it easy to say that Target is doing really well. "

As for the shares of the company, he thinks that they are cheap.

">

Target has recently fought two wars. One against the online giant Amazon, and another against the brick-and-mortar gorilla, Walmart.

And it's a winner.

"Target has every reason to fail right now," said John Zolidis, equity analyst. "The company is facing a tendency to abandon in-store purchases. Its main competitors aggressively spend to take shares. The weather is always bad. Still, Target reports compositions that exceed those of most other retailers. The company reports a positive inflection of margins. It beats analysts' estimates and its prospects seem safe. "

It's the music of Wall Street bulls that has pushed Target's shares up faster than Amazon and Walmart figures.

How did Target do it? With a three-step strategy that aligns the capabilities and resources of the company with its goals in the new retail landscape.

First of all, it's the positioning. According to Zolidis, Target has focused its market on its main customers, young families. "Target is not trying to be everything for everyone," he says. Like Walmart, that is to say, it has extended the range of its products to that of Amazon.

"TGT focuses instead on its main customers, namely young families," he continues. "Target's strategy is to offer a range tailored to the needs of this group, at a low price, and differentiated and complemented by a broad selection of private label products, particularly in the categories of apparel and discretionary homes."

* Whole foods

Source: Finance.yahoo.com 30/05/2019

Secondly, it is investing in technology and improving stores to increase its capacity to provide better services. "Target benefits from the acquisition of Shipt Inc., a start-up specialty grocery delivery company, for $ 550 million in 2017," said Haris Anwar, Senior Analyst at Investing.com, the global platform. financial markets. pick up in store. "

Then there is the rationalization of its brick and mortar operations, and the redevelopment of the stores. "In terms of physical activity, Target benefits from an improved supply chain and its efforts to intelligently rearrange stores and create new brands," says Anwar. The retailer also quickly seized customers of some of the big brands that failed to survive in this harsh environment, such as Toys "R" Us. "

Third, it's innovation – Target has launched new product lines. "Target has also managed to make a difference when it comes to fashion," Anwar adds. "It has launched new brands for intimate apparel, nightwear and essential household items, and plans to add another brand to beach and pool products. These initiatives make the retailer stand out from Walmart. "

Zolidis is optimistic about Target's future. "Starting with 1QFY19, we think it's harder to ignore Target's outperformance in the first quarter," he said. "At the same time, margins are shifting positively, reflecting the many years of investment and positioning of the company. Although the tariff and macroeconomic risks remain, we find it easy to say that Target is doing really well. "

As for the shares of the company, he thinks that they are cheap.