Reply to “Target is not an ‘everything store,’” Says CEO , “That’s not what guests want from us.”

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Reply to " “Target is not an ‘everything store,’” Says CEO , “That’s not what guests want from us.”"

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[quote=Anonymous]I think the CEO's sentiment is correct, but his communication skills are off. He should be using different words.

Target carries all the basics, plus some. Toilet paper, milk, deodorant, batteries, underwear, cereal. It has "everything" [I]that you absolutely need[/I]. However it's not an "everything store" the way Walmart is. Walmart generally has a wider selection of things like household appliances (Target will carry 5 vacuums whereas Walmart will carry 20) or grocery items (Target will carry their house brand plus maybe the two most popular name brands whereas Walmart will carry like 8 kinds of yellow mustard).

The way this used to be described in the 00s and teens was that Target was a more "curated" shopping experience. That word is no longer fashionable but it's accurate. You get less selection at Target, but what you get is often more aesthetically pleasing. And the extra options at Walmart are often budget options (thus their lower prices overall). This is why Target got the rep for being an upscale Walmart -- because it was all the same categories of stuff, but only the "good" stuff. Sure you might pay a little more, but you were often paying for a better product.

With inflation that last part is no longer necessarily the case. Walmart now beats Target's prices on identical items regularly. I think this is partly to do with Walmart's vertically integrated supply chain, though I also think Walmart is underpricing certain essentials right now as a loss leader to capture bigger market share, as more consumers are becoming budget conscious and even UMC customers are willing to deal with the less appealing experience of shopping at Walmart if it means saving $20/week on groceries and other necessities. Online shopping and same day delivery also works to Walmart's benefit in this way -- you can easily comparison shop via apps and then go with the one that is cheaper, which is usually Walmart.

Anyway, I still get what the Target CEO is saying. He's not saying that Target doesn't carry the stuff you need -- they really do generally carry everything you need in terms of household supplies, groceries, office supplies, electronics, clothes, and stuff for kids. But the curate what they sell for a slightly upscale customer who is willing to spend a little more in order to have a nicer experience, and to avoid having to sift through a ton of budget options. The problem is that the current economy is shrinking the pool of customers who want that (or can afford it). But he's 100% right that this is Target's value-add. He's just saying it in a way that is annoying people because yes, of course what people want from Target is the convenience of getting a bunch of different necessities, and maybe a few nice-to-haves, in the same place at a reasonable price.[/quote]

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