reddog

Target: Customer Passion Still Compels Profits

The common but mistaken perception is that Target is more expensive than Walmart yet when comparing like items as a whole, the difference is very marginal. But what sets Target apart product wise is the unique in house and designer designed products, non-commodities in a commodity market. There is more style offered, yet prices are well below the traditional designer goods available elsewhere. The result is more value in the products, combined with more value in the overall shopping experience, which is well documented.

This is why margins are higher, as they should be. The tough market is hurting Target in that people are cutting back on non-essential goods. This can't last forever and eventually consistent results will return.