Target Competition
Now Viewing Target's competition in: Discount Stores
Recent Developments
Wal-Mart Brands Health Clinics - After leasing space to outside companies to operate instore health clinics, Wal-Mart is opening its first clinic under the Wal-Mart name. The company will partner with local health providers in Atlanta, Dallas, and Little Rock to open "The Clinic at Wal-Mart." Located in Wal-Mart Supercenters, the clinics will operate as quickservice health stops. Wal-Mart's goal is to operate 400 co-branded clinics by 2010.
Apparel Prices Continue Fall - While falling apparel retail prices should increase demand for value-priced clothing sold in discount department stores, companies must be cautious when introducing designer lines, which tend to be more expensive. Retail prices for apparel decreased 0.6 percent during fourth quarter 2007 versus year ago, extending a trend of decreases to three straight quarters. Price declines in women's, men's, and girl's clothing drove the category decline. For the full year 2007, retail apparel prices decreased 0.4 percent after remaining flat the previous year.
Toy Sales Decline - Sales of toys, an important category for discount department stores, fell less than anticipated during 2007. Despite massive safety recalls, total toy sales declined just 2 percent between 2006 and 2007, according to NPD Group. Weak categories included infant/preschool and sports and outdoor toys, and dolls. Sales of action figures and accessories and vehicles grew 6 percent each. Discount department stores and mass merchandisers represent over half of toy dollar sales.
Competitive Landscape
Population growth and consumer spending drive demand. The profitability of individual companies depends on efficient supply chain management, effective merchandising, and competitive pricing. Large companies dominate the industry, and enjoy advantages in purchasing, distribution, and marketing. Average annual revenue per worker is $175,000.
Discount Stores Industry Forecast
from Hoover's/D&B subsidiary First Research
The output of the US retail industry, which includes discount stores, is forecast to increase at an annual compounded rate of 4.2 percent between 2007 and 2012.
Retail Industry Growth Level
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

First Research Opportunity Rating
The First Research Opportunity Rating is First Research's estimate of industry performance vs. industry risk over the next 12 to 24 months.

- Demand: Tied to consumer income
- Need good merchandising
- Risk: Slowing economy limits spending on non-essentials
Industries Where Target Competes
- Retail
- Discount & Variety Retail (primary)
- Apparel & Accessories Retail
- Construction
- Construction & Design Services
- Financial Services


