Question

RETAIL ASSIGNMENT

              For this assignment, you will need to do a little shopping and research. Visit two retail establishments that sell similar merchandise categories and cater to the same target market(s). How are their retail formats (elements in their retail mixes) similar? Dissimilar? How does each retail establishment attempt to achieve a sustainable competitive advantage? Explain which establishment you believe has a stronger position.

Your analysis should be pretty in depth. For example, you could reference pricing, employee knowledge or assistance, atmospherics, merchandise depth or breadth, exclusive or private label brands, just to name a few.

Another way to think about this assignment is to consider yourself a retail consultant. If you were asked to conduct an audit of each retail establishment and provide a report to the firm’s board, what information would you provide.

Answer 1

answer-

The two retailers i will discuss about are Walmart and Target which are both discount stores sells variety of products to customers at low cost.Walmart is the supermarket having many stores all around the US same for the target.Both are very big retail stores giving big competition to each other. When it comes to big-box discount stores, Wal-Mart still dominates the market with its sheer size. But its primary competitor, Target, has been carving out market share with catchy advertising campaigns and hip design partnerships. The differences between the two extend as well to their business models. Walmart prefers the lowest cost, while Target angles more toward profit margin and youthful image.

Wal-Mart is a retail giant that is at least five times larger than its primary competitor, Target. Wal-Mart also seems more efficient in business operations than Target—this is reflected in its higher inventory and asset turnover, as well as operational dollar generated per dollar of asset.

Target runs large stores as well, but they are more focused on profit margins through the supply chain, which is why they are able to post lower revenues but higher profit margins.

Target has used utilized a low pricing strategy similar to Walmart, but is more focused on the e-commerce platform, experiencing over 30% of e-commerce sales growth in 2018. Instead of mega-store like Walmart, Target's business model focuses on slightly smaller stores, focusing less on direct bottom-line savings than on a younger commercial draw.

in short, Both stores attempt to achieve competitive advantage by become low cost leader in the retail market. they offer all variety of products grocery, electronics,cosmetics from different brands at low cost also employees at its stores are welcoming and helpful nature where they help customers.

Walmart has more product range as compared to target also the employees at Walmart are more trained and educated about the products as customers ask for any products they can direct the customers instantly. while in Target there is lack of such initiative.I think walmart has stronger position in retail industry if we compare it to target based on competitive strategy as well business operations and supply chain because Walmart has effective supply chain in which i never experienced out of stock condition while in Target i sometimes faces the out of stock product situation.