The Differences and Similarities between Wal-Mart Stores and Target - Report Example

Wal-Mart vs. Target: A Comparative Study Hamdan Almansoori Introduction This paper will discuss in detail the many differences and similarities between Wal-Mart Stores, Inc. and Target Corp. This is a comparative study between the two stores and, as such, will delve into the history and culture of the two companies, as well as the business and commercial interests that the two companies are engaged into at present. The paper will also discuss the business practices of the two companies, making a comparative study on all aspects that this paper will introduce. The paper will compare the cultures, mission, vision and community outreach made by each company. Finally, the paper will compare the two companies based on their assets and liabilities, income and loss, profits and overall performance. Store Origins & Locations The Wal-Mart web site claims that Wal-Mart serves customers in over 7,800 Wal-Mart stores and Sam’s Club locations in 16 markets worldwide, employs more than 2 million associates, and serves more than 100 million customers per year. The store is proud of its heritage, in as much as it has been serving customers since 1962, beginning its journey in Rogers, Arkansas. There are 2,612 Supercenters in the U.S. alone as of Jan. 31, 2009, as well as 153 Neighborhood Markets and 891 Wal-Mart Discount Stores across the U.S. The size of an average store is 107,000 square feet. Each store employs about 225 associates. There are 3,615 units outside the U.S. as of Jan. 31, 2009, with 602 Sam’s Club in the U.S. Target, on the other hand, also began its business in 1962, in Roseville, Minnesota, with a shop. According to its web site, Target ushered in the era of discount retailing holding hands with trendy merchandise. This combination completely changed the shopping culture. The first shop is the prototype of all the shops opened until that date. Today, Target operates more than 1,600 stores in 48 states, including more than 200 SuperTarget® stores that include an upscale grocery shopping experience. As of 2008, Target boasts of 1,699 stores and 351,000 employees. Store Branches & Services Offered Target stores include upscale grocery sections, photo processing corners, pharmacy counters together with food avenue restaurants, in-store everything for the baby, deli, meat and produce sections. Great design is the essence of the Target brand. Target partners with world-class designers to offer amazing products at affordable prices. Design is about more than just good looks. It’s about creating solutions that surprise and delight Target’s guests. Every Target store is designed to meet the same goal—make every Target shopping trip an easy, enjoyable experience for every guest. Wal-Mart stores feature wide, clean, brightly lit aisles and shelves stocked with a variety of quality, value-priced general merchandise, including family apparel, health and beauty aids, electronics, toys, lawn and garden items, jewelry, automotive products, home furnishings, hardware, sporting goods, pet supplies and house wares. Wal-Mart Supercenters were developed in 1988 to meet the growing demand for convenient, one-stop family shopping featuring their famous Every Day Low Prices. Wal-Mart saves its customers’ time and money by combining a full grocery and general merchandise under one roof. There are 2,622 Supercenters nationwide, and most are open 24 hours. Supercenters average 187,000 square feet and employ about 350 or more associates. Wal-Mart Neighborhood Markets offer a quick and convenient shopping experience for customers who need groceries, pharmaceuticals, and general merchandise all at the company’s famous Every Day Low Prices. First opened in 1998, there are now 150 Neighborhood Markets, each employing about 95 associates. A typical store is about 42,000 square feet. Opened in 2008, Wal-Mart’s Marketside stores are small community pilot grocery stores specializing in fresh, delicious meals at great prices. In Marketside stores, customers can shop for a variety of fresh ingredients, restaurant-quality prepared meals and their everyday favorite national brands - even freshly baked breads and a wide assortment of wines. Online Services Founded in 2000, Walmart.com brings the convenience, great merchandise selection, friendly service and Every Day Low Prices offered by Wal-Mart to the Internet. Walmart.com features more than 1,000,000 products, plus easy-to-use music downloads and digital one-hour photo services. During the holidays, Walmart.com features many special offers available only online. It’s also a convenient place to find out about the company’s exciting in-store holiday specials. Target launched Target.com in 1999, introduced its first GiftCards and, as part of the innovative Sign of the Times branding campaign, debuted its mascot, Bullseye, the Target dog. Target’s mission is to make Target.com the preferred shopping destination for its guests by delivering outstanding value, continuous innovation and an exceptional guest experience while consistently fulfilling its Expect More. Pay Less.® brand promise. Company Culture Wal-Mart promotes three basic beliefs and values as part of its culture: Respect for the Individual; Service to Their Customers; and Striving for Excellence. Wal-Mart promotes freedom of expression for every individual and values each person’s thoughts and ideas. They treat each other with dignity, describing it as the most basic way that they show respect. The company offers quality merchandise at the lowest prices, and does it with the best customer service possible. The company’s employees are constantly reaching further to bring new ideas and goals to life, keeping their customers’ needs in mind. Target’s culture is something much more than business and services. It has a philosophy laced with values. Target connects business with the community. It is all about affordability when it comes to price. On the one hand there is the global aspect and on the other there is the heritage of each particular community. Target respects each and all. Target has not allowed the culture of the world to get lost—rather it has preserved it on its shelves. Diversity is a core value throughout every area of the company. It is integral to how it selects merchandise, designs stores, builds its team and welcomes its guests. Giving Back Wal-Mart calls itself a "store of the community," according to its official web site, http://walmartstores.com/CommunityGiving/ making the greatest impact by supporting causes that are important to its customers and providing financial and volunteer support to more than 100,000 charitable and community focused organizations, and by using its locations to provide opportunities for customers and associates to give back. According to http://www.aboutus.org/Target.com, Target is "proud about its contribution to the general welfare of society. It not only supports the arts but its team members compete with each other to make donations. Since 1997 Target has contributed $200 million to the cause of better schools. Target is in partnership with Tiger Woods Foundation. Plus, 5% of its pre-tax benefits have been given for good causes.” Target also recycles shopping carts, donates extra left over stocks, and cuts down on energy consumption by about 70%, giving back to its community in a major way while still managing to provide quality service to its customers. Target also gives 5% of its income to support education, the arts and social services. Target strives to be a responsible steward of the environment. In addition to complying with environmental regulations, the company seeks to understand its impact and continuously improve its business practices in many different areas. Financials & Annual Reports Target.com reports that in 2008, Target Corp. reported total revenues of US$64.95 billion with a 2008 sales mix of US$62.9 billion. Wal-Mart Stores, Inc. reported net sales of US$401.24 billion with a net income of US$13.4 billion in 2009. Brainstorming Wal-Mart clearly takes the lead when it comes to its revenues, sales, overall income and total number of store branches. However, Target is obviously the more conscientious of the two when it comes to giving back to its communities—guaranteeing a total contribution of 5% of its pre-tax income to support education, the arts and social services. In terms of services, both companies strive to deliver the highest quality and most value for their customers’ money, ensuring customer satisfaction and putting the needs of their customers first. Both companies are neck and neck when it comes to the delivery of quality services as they both seek excellence in their products and services while providing the most appealing shopping experience to their customers. Both stores have online shops, making their services all the more accessible to their clients while still guaranteeing the old-school quality that their stores are best known for. They also are in stiff competition when it comes to the design of their shops and the products they serve, carrying only the best line of goods for their customers. The two companies have different core values but the essence remains the same—the customer always comes first in terms of service, value and importance. While Wal-Mart values the input of every employee, Target gives great importance to the communities where its stores are located. Both are active in charitable institutions while Target is best known for being the more environment-friendly of the two companies. In spite of the fact that Wal-Mart has more outlets and branches worldwide, it is not lost on the author how Target has still managed to create an indelible mark on the U.S. market, as well as other markets worldwide, reaching shoppers online via its web site. It is quite obvious that both companies are thriving, based on their financials alone, not to mention the fact that their number of outlets keep growing every single year. Therefore, it would not be surprising if they still remain the leaders of their segments years or decades from now. References http://sites.target.com/site/en/company/ http://walmartstores.com/ http://walmartstores.com/AboutUs/ http://walmartstores.com/CommunityGiving/ http://walmartstores.com/Investors/ http://www.aboutus.org/Target.com http://www.target.com/ Read More