Financial Statements Of Target And Walmart

Many discount retailers have come and gone over the years, but Wal-Mart and more recently Target, have employed business models that continually deliver profits, even in the struggling economy of the United states in recent years. Wal-Mart and Target both have expanded rapidly since their inception and while Wal-Mart has become an international retailer with stores in fifteen countries and all over the United States while Target has

Target started in 1902, and then decided to expand nationwide. The success happen step by step, which help them learn at the same time the customer’s need. As of today, Target is known to be one of the best companies in the world. The success happened because of the variety of their products, but also the quality of their products. Part of Target’s revenue is donated to what they believe is important in our society, which is education, and health. Target has many competitors, but the one listed below are Wall-Mart, Costco, and Carrefour. Those competitors are well known in the world. Indeed, they are listed as the most valuable companies in the world and each have an important part in the market value. Target is spending a lot of money when it comes to advertising. Indeed, advertising represents an important amount of their expenses. Target goal is to expand and get more customers. In consequence, the net profit has decreased in the last 5 years, because of their expenses. Even though, there net profit has decreased, Target’s revenue is still increasing in the overall.

Wal-Mart and Target are both great retail stores to go and find a good bang for your buck shopping experience. After researching both companies, it appears they have the same ideas as a mission, saving the customer money. Wal-Mart Mission statement reads;

With the down turn in the economy, many consumers have turned to Dollar General and Dollar stores; this has caused a decrease in Target’s revenue. Another threat is Wal-Mart and their ability to offer lower prices on their products compared to Target which makes them the low cost leader. (ehow.com)

Target is one of the largest retailers in the United States. Target wants to be able to give guests better quality products for a cheaper price. They also want to be the one stop shop. Target relies on their team members to keep

The retail industry is one of the largest industries in the world, by business numbers and employees. Plunkett Research Ltd. As of 2011 Wal-Mart was still the giant of the retail market. As Wal-Mart nearest competitor Target heats up the market, Target seems to be gaining in customer loyalty and has picked up on Wal-Marts grocery strategy. According to the Plunkett report, recession ravaged consumers not only want dry goods at a discount, but they also want groceries discounted (PlunkettResearch.Com, 2012). Target also has been gaining customers who want stylish well organized stores that appeal to their senses.

Target Corporation is a retail chain specializing in household goods, clothing, food, and accessories at discounted prices. The retail chain’s history started back in 1902 as Goodfellows and in 1910 as The Dayton Company. Initially, the chain specialized in “furnishings, fabrics and decorations for business and other public institutions” (“Target Corporation,” 2016, p. 5). Eventually, Target went public in 1967 and on to acquire Mervyn’s in the 1970s where they became the seventh largest retailer in the United States. Target operates in the United States, where it is headquartered in Minneapolis, Minnesota and as of January 31, 2015 Target employs over 300,000 people. “The company recorded revenues of $72,618 million in the financial year ended January 2015, the operating profit of the company was $4,535 million, [and] the net profit was $2,449 million” (“Target

Target has been around for quite some time and has definitely made some mistakes in the past. Unlike some businesses who consistantly make the same mistakes over and over, Target has moved past these mistakes and learned from them. The company attempted international expanision to Canada in 2011 and with poor planning the expanision failed. Over 124 stores opened within a 2 year period and experienced they experienced several problems with how quickly the transition happened. The locations that they picked were not buildings that supported Target’s merchandising, and the move into Canada happened so quickly that the shelves were not appropriately stocked. The compnay also did not do anything to compensate for the competition that Wal-Mart supplied them with in the Canadian market. With all that being said, Target closed it’s doors in Canada and kept all its retail stores in the United States. Even

This paper will give a summary of Target corporation versus Wal-Mart stores, Incorporated. In the following weeks it will compare the financial performances of these two companies, by evaluating circumstances such as the times interest earned, return on equity, return on assets and other factors. This paper will present an overview of the exchanges on which both company’s stock is traded. It will also present characteristics of that particular exchange which may have led the company to be listed there versus another exchange. This summary will also explain the types of securities both Wal-Mart and Target have outstanding, such as the bonds, preferred stock or the common

Target’s D/E ratio is a little high compared to its competitors, but this just shows how Target has been aggressive in financing its growth with debt. Even though Target does have a much lower total revenue than both of these competitors, they do have very good ratios and can stand up with their industry competitors.

Within every organization there are advantages and disadvantages as well as strengthens and weakness. One of the biggest weaknesses of the Target Corporation is that all of their operations are located in the US. The organization would benefit more if they engaged in business with multinational countries. Wal-Mart has more than 11,000 retail stores in 27 multinational countries. If Target is ever going to move out of their second place position behind Wal-Mart there are going to need to expand globally. The Target Corporation is still trying to recover from the embarrassing financial disaster they made when they tried expanding their brand in Canada. Target spent 1.8 billion for 222 locations in Canada. Unfortunately, this merger

Targets biggest competitor Wal-Mart is ranked 14th on the 2010 Forbes top 2000 companies. Wal-Mart posted financial numbers of 421.849 billion in sales, 16.993 billion in profit, and 180.663 in assets. However Wal-Mart's profit margin is 4.0%; 0.3% less than Target, and has a price to sale ratio of 0.43.

Target’s Management Discussion and Analysis, item 7 in their Form 10-K, valued several noteworthy items contributing to their fiscal 2016. Key standout points addressed by management included: 2016 in-store sales decreased .5% because of a .8% decrease of in-store foot traffic, digital channels experienced a 27% growth in sales which contributed 1% points of comparable sales growth, adjusted earnings per share were $5.01, returned $5.0 billion to shareholders through dividends and share repurchases. Furthermore, Target’s GAAP earnings per share from continuing operations were $4.58 in 2016 (Target Corporation, 2017).

Target may have a bigger selection on some products, but their store is such a big hassle. To have a well managed store you need good customer service, a good atmosphere, and low prices. That’s something Target has none of and Wal-Mart has plenty of.

Kroger competes with Neighbor market and supercenters of Wal-Mart especially on the grocery product line. Target competes with Discount stores and supercenter shopping formats of Wal-Mart with Target commanding a small premium on prices as it follows fashion trend. Market segment of Target is the high-income customers leading to higher margin realization. ($ 50,000 of target vs. EDLP strategy of Wal-Mart by leveraging purchasing scale has pushed down prices compared to other retailers.