Walmart Case

In a tough economy, everyone is pinching pennies and trying to cut costs whenever possible. Large-chain discount stores such as Walmart and Target have become part of the American way of life. At some point we find ourselves shopping for the best bargains available. Discount chains offer a wide selection of products at low competitive prices. Walmart has been geared toward people looking for the lowest possible prices on discount goods and even offers price matching for customers finding the same product elsewhere. Target offers a lot of the same products as Walmart but strives for a completely different shopping experience for its customers.

Target is slightly more upscale and its customer base is usually a younger, educated and more affluent shopper. Target stores are designed differently than the large box discount chains like Walmart. Target enhances its stores with wider shopping aisles, dropped ceilings, and a more elaborate presentation of its merchandise and products. It also gives special attention to the design and appearance of its stores by using graphic-enhanced advertising and cleaner display features, which are more appealing to the consumer's eye. Walmart uses inexpensive signs made of paper or foam boards to display items that are on sale or at discounted prices, and the store resembles a large open warehouse.

Some people jokingly refer to Target in the pseudo French pronunciation /tar-zhay/ thus suggesting it is an upscale, expensive boutique. The shopping environment is different in many ways at both stores. Wal-Mart has larger crowds with long lines and numerous checkout aisles, unlike Target which uses less checkouts dues to a lower volume of customers. It is common to hear music or announcements over the intercom system at Wal-Mart while you are shopping. Target is very quiet without music or loud speaker interruptions, giving the store a more soothing environment in which to shop.

Wal-Mart and Target also have superstores which stock a full grocery section for its customers who are looking to buy everything they need at one stop. This is an appealing feature for customers who do not want to travel to different locations for all of their shopping needs. Wal-Mart Super stores exceed the number of Target Super stores by wide margin. Target has realized the Super store shopping trend and is continually expanding throughout the United States and Canada to capitalize on this venture. Super stores of Wal-Mart and Target are not only limited to larger grocery sections but most have included pharmacies, optical stores, photo shops, and a restraint or cafeteria for customers convenience. Wal-Mart also offers hair and nail salons at some locations as well as auto service departments. Target has yet to incorporate these into their national chains. The overall strategy is to keep the customer in the store for long periods of time and providing common services that meet the needs of most consumers. The addition of these special services adds to sales and increases company profits for both stores.

Walmart and Target are multi-million dollar American-based companies thriving in a global economy where smaller chain discount stores are constantly struggling. The discount drugstores and hardware stores of the past have not been able to compete with the popular large chains that exist today. For a lot of customers, buying goods and products made in America is important to them. Walmart uses this in advertising by telling customers certain products are "Made in America." This is sometimes misleading since Walmart carries many products made overseas and has had media attention for having "sweat shops" operating in countries like China and India, where workers experience horrible working conditions. Even though most American are against these types of business practices, individual circumstances still dictate our shopping habits. Most American

...