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Neo

Can Walmart attract customers from Target?

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This topic was brought up in the Metropolitan Midtown Redevelopment thread, but since it has gotten a little off topic for that thread, I'm creating one dedicated to the topic.

Metropolitan currently has a Target, a company that typically (or presumably) attracts more affluent shoppers. The question is if the new Walmart location at Amity Gardens will attract Target's customers away from this location specifically. This thread is also game for discussing the two companies as a whole and whether or not either one can attract the other's customers.

It has been rumored that Walmart will begin selling Apple products (i.e. Macs, not just iPods) in a dedicated section (similar to Best Buy). This obviously is a grasp for more market share, but will it work in dooming this Target location or Target as a whole? I personally have issues with Walmart that prevents me from shopping at any of their locations, but I disagree that Walmart will attract many affluent customers from Target as a whole with this tactic.

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I am of the same opinion as you Neo. I avoid Walmart like the plague and cringe when I hear other people mentioning going there. Same with McDonalds. There was a time that I was naive and frequented the two quite often but now they are last resorts for me if I happened to have an undying need for crazyglue at 4a.m.

I feel that Target stays in business because of the stigma that shopping at Walmart carries for some. Unlike Kmart, Target is a far cry from Walmart in terms of the general atmosphere of the store. Even the SuperTargets feel nicer than the SuperWalmarts almost regardless of location.

I have a feeling Target is not in danger, the only time I've ever seen a Target dead is near closing time or early in the morning. And they usually have the appropriate staff to handle the customer volume unlike Walmart.

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I won't shop at Walmart for many reasons including their business methods. I know many like minded people. I also know plenty that do shop there.

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Any walmart nearby will never be as nice as Target, especially how they made that particular Target.

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i've never seen a Target go out of business or even appear to be remotely in trouble, (in areas absolutely saturated with big box stores no less), and this Met Target is easily the most popular one i've seen. i think that the amity walmart will steal a small handful of customers living in that specific area, nothing of much consequence.

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Time magazine did an article comparing Walmart to Target. Basically it's no contest as Walmart is cleaning Target's clock by taking customers away from Target. Target is being forced to respond by adopting some of Walmart's strategy.

In terms of store loyalty, Target's is around 20% vs 49% for Walmart. IMO, I see no reason for Target to exist. If one is going for big box discount goods, then why go to the one that charges more money? In terms of groceries I have shopped at Super Walmart and Super Target. Walmart beats them hands down on price for exactly the same items.

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i've never seen a Target go out of business or even appear to be remotely in trouble, .....

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In Charlotte, the Target at Eastway and Tryon closed, the one at Independence and Conference Drive closed, the one on Tyvola Rd closed, and the one on Freedom Drive closed. That is 4 for you .

Target is also very bad about cherry picking neighborhoods and not participating in any efforts to help redevelop distressed areas of cities. Walmart gets high marks for this because while Target closed it's stores on the West Side Walmart opened two superstores. Walmart gets high marks for being involved in community development where Target gets practically none. If you guys want to support big box retail, which is surprising in any case on an Urban Development website, Target is probably one of the worst in this class of retailers.

It seems to me there are a lot of misconceptions amongst this crowd about Target because the actual data doesn't match reality of numbers and statistics.

I'm not sure what you're considering community development, but Target does more than "practically none." You can see information on this here: http://sites.target.com/site/en/company/pa...d=WCMP04-031700

Does Walmart give more money back to the community? Yes, but it is because their revenue is much higher. If Target and Walmart's revenue were the same, Target would no doubt be giving more back to the community dollar for dollar so I'm not sure that equates to "practically none."

Perhaps we should focus on Walmart ASKING the community for money? In 2002 Walmart asked the city of Chicago for $18 million in subsidies to build a store within city limits. That, to me, doesn't sound like giving back to the community.

"Michael Hicks, an economist at the Air Force Institute of Technology at the Wright-Patterson Air Force Base in Ohio, conducted a study analyzing state Medicaid data from 1978 to 2003 and found that Wal-Mart causes an increase in state Medicaid spending by as much as $898 per person." - source - That doesn't sound like Walmart is giving back to the community to me. Perhaps they want it to appear that they're giving back to those that shop there, but in reality they are being damaging to the community as a whole.

In 2004, 80% of Walmart's 60k suppliers were based in China.

"In 1994, Rubbermaid won accolades as the most admired company in the United States -- but five years later, its fortunes fell so hard that the company sold itself to a competitor. When the price of a key component of its products went up, Rubbermaid asked Wal-Mart for a modest price increase -- but Wal-Mart said no, and stopped sales of Rubbermaid products. At a Rubbermaid factory in Wooster, Ohio, that meant the loss of 1,000 jobs." - source

Are you still agreeing that Walmart gives back to the community? Sounds like it makes every attempt to take away from the community and then cover their tracks with profits made from products made by their 50k or so suppliers in China.

I'm obviously aware that Target also sells goods made in China, but for you to say that Walmart is positively involved in community development and Target is not is absurd.

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In Charlotte, the Target at Eastway and Tryon closed, the one at Independence and Conference Drive closed, the one on Tyvola Rd closed, and the one on Freedom Drive closed. That is 4 for you .

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I agree about the rubbermaid story. Wal Mart's prices are lower than most everywhere else because they can bully even the largest company into reducing the price of their product in the store. They have enough of a monopoly on retail in this country that they can indeed threaten not to carry a product even it means that the supplier has to sell it at a great loss. Hey, this is Wal Marts heyday. When fuel prices increase to the point that shipping items from around the world is financially unfeasible, then Wal Mart and many other retailers will change the way they do business. Wal Mart (like most big boxes) is a broken model and will need to change drastically in a world where oil isn't as cheap as it's been.

In regards to Target, there's not much difference between the 2. Wal Mart's sort of the 800 lb gorilla and Target's maybe a 300 lb one. Target tends to paint a prettier picture with trendier commercials and nicer stores but all in all, its the same business model on a smaller scale.

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They closed the physical stores, but actually opened a new store for each closing so in a sense relocated... Independence & Conference to Matthews at 51 & Matthews Township Parkway; Tyvola Road to I-485 at South Blvd; Eastway and N Tryon to University City Blvd; and Freedom Drive to Huntersville.

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