![]() According to Target Corporate website, Target has a location at approximately 10-mile radius of 75% of US population. Headquartered in Minneapolis, Minnesota, Target has around 1938 stores covering all 50 states in the United States as of Aug(ScarpeHero, 2022). Moreover, Target offers discounts and rewards on Target REDcard, Target Visa, and Target Card. Target also offers great discounts on electronics such as TVs. A Target-owned brand white 3-drawer chest price is around $10 cheaper than the exact same product in Ikea. Furniture items, for example, can easily compete with Ikea. One can argue that the reasonable prices at Target are mostly due to its owned brands and a range of products from unknown brands but seemingly of the same quality and design. Target has been successful in offering affordable prices compared to its competitors such as Safeway Inc. Target believes that its stores have wide selections of items for every taste and their presence in almost every neighborhood brings convenience and comfort for their customers (Target Corporate, 2022).Īs for pricing, Target uses economies of scale, value and discount pricing tactics. Target also provides seasonal and occasional products such as Halloween or Christmas related items. The corporate’s approach to what to sell in store is a big focus on national brands, such as AVA & VIV for women’s apparel and CASALUNA for bedding and bath items (Target Corporate, 2022), This strategy of promoting national brands is extremely crucial for continuance of local and national vendors and also American economy. Target is in partnership with designer brands to promote and sell their products exclusively at a Target location as well (Target Corporate, 2022). One third of the products sold by Target are exclusive to Target stores procured by self-owned brands and private brands such as BRIGHTROOM providing home storage organization items and BOOTS & BARKLEY offering pet beds and toys and so on. In other words, Target is a one-stop location to meet almost all household needs. Like many other big box department stores, Target offers a wide variety of products and services for instance food, clothing, home decor, pharmaceuticals, and electronics to name a few. Figure 1 shows Target Corporation business model canvas. Target is a popular store due to its multiple locations and affordable prices. Target corporation is on the list of S&P 500 with market value of 110.57 billion dollars as of January 7th, 2022 (Value.Today, 2022). ![]() Dayton company opened the first Target store in 1962 as a “discount version of Dayton's department store” (Nolen, 2019). Target is an American big box department store chain and the 7th largest in the United States (Wikipedia, 2022).
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