Liquidity of Wal-Mart and Target (Slide 1)
• Wal-Mart’s current ratio is 0.93, Target current ratio is 1.11 and the industry ratio is 3.04.
• Both need improvement of current ratio, because it is below industry ratios.
• Quick ratio for Wal-Mart is 1.04, Target’s quick ratio is 0.21 and the industry ratio is 0.31.
• Wal-Mart’s quick ratio is good and Target’s is excellent.
• Accounts receivable for Wal-Mart is 9 days and Target’s is 6 days, and the industry is 17 days.
• Wal-Mart and Target both have areas that need improvement.
Profitability of Wal-Mart and Target (Slide 2)
• Target beats Wal-Mart in both gross profit margin and net profit margin.
• Wal-Mart
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Long-term prospects of Wal-Mart (Slide 4)
• In 2016, Wal-Mart’s income came in at $117.5 billion, which increased 1.4%, from the previous year.
• Wal-Mart's made acquisitions of smaller organizations has increased web based business.
• Wal-Mart has also procured Jet.com, which changed the organization's online operation (Shukla, 2017).
Long term prospects of Target (Slide 5)
• Target has purchased little store designs as part of its endeavors to enter the thickly populated urban areas.
• These stores are 25% littler than Target conventional stores, because they can are produce higher normal deals than customary stores.
• The smaller stores has earned sound deals development in mid-to-high single digits
• The organization is making more ventures for faster rollout of these stores (Seeking Alpha, 2015)
Long range trends in revenue, expenses, and income of Wal-Mart and Target. (Slide 6)
• Both Wal-Mart and Target announced positive initial quarter 2016 outcomes, however, disparate standpoints.
• In the main quarter, Target detailed balanced profit of $1.29 versus $1.10 a year ago or $1.02 versus $1.01 on a GAAP
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(2017).Retail sector industry ratios. Retrieved from http://csimarket.com/Industry/industry_Financial_Strength_Ratios.php?ind=1303 Mirzayev, E. (2015, July 7).Target vs. Walmart: Who's winning the big box war? Retrieved from http://www.investopedia.com/articles/active-trading/070715/target-vs-walmart-whos-winning-big-box-war.asp#ixzz4ig7VgCd7 Mowen, M.M., Hansen, D.R., & Heitger, D.L. (2014). Cornerstones of managerial accounting (5th ed.).Mason, Oh: South-Western Cengage Learning.
NASDAQ. (2017). Target Corporation (TGT) Balance Sheet. Retrieved from http://www.nasdaq.com/symbol/tgt/financials?query=balance-sheet#ixzz4gXL0aURA NASDAQ. (2017). Target Corporation (TGT) Income Statement. Retrieved from www.nasdaq.com/symbol/tgt/financials?query=income-statement NASDAQ. (2017). Wal-Mart Stores, Inc. (WMT) Balance Sheet. Retrieved from http://www.nasdaq.com/symbol/wmt/financials?query=balance-sheet NASDAQ. (2017). Wal-Mart Stores, Inc. (WMT) Income Statement. Retrieved from www.nasdaq.com/symbol/wmt/financials?query=income-statement Reynolds, B. (2016, September 15).Walmart stores vs. Target: Which is the better stock investment? Retrieved from
(Target.com) According to executive vice president of Property Development, John Griffith says “Our focus is on ensuring the Target shopping experience is available when, where and how guests want it." In addition, CityTarget is another small store format ranging in size from 80,000-160,000 square feet, and is focused on urban customers. CityTarget offers customized assortments and services to meet the needs of urban living customers. The edited assortments include smaller pack sizes and items that can be instantly consumed. As a result, CityTarget locations bring the highest traffic in the company. Target has plans to further continue to explore new ways to meet their customer’s needs with convenient small format locations. Along with TargetExpress and CityTarget, the company will continue to innovate its general merchandising stores by testing new layouts and merchandise assortments to provide customers with easy, convenient, and personalized shopping options. () Hence, Target will invest in three distinct store formats that will further enhance and customize their customer’s
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
Shares of Wal-Mart Stores, Inc. are suitable for value investors or investors who favor stocks with low share prices relative to the company's earnings and book value and suitable for conventional investors who are seeking principal protection and current income from dividends. Focus on financial ratios on a company's direction, its probability of remaining solvent and whether its stock is overvalued, undervalued or valued just right. Current Ratio Wal-Mart's current ratio comes in a little low at 0.92. Target's is 1.1, and Costco's is 1.03.
In today’s world, especially in Canada, consumers generally want to satisfy all of their needs in a way that saves them the most time and energy. In order to meet this need, Target offers their customers the chance to buy different products that they would normally have to go to two or three different stores
The retail industry is dominated by few retail giants, with Wal-Mart competing in several retail categories. Wal-Mart competes against Kmart and Target in the general merchandise retailing; against Costco in the warehouse club segment; and against Kroger, Albertson’s and Safeway in the supermarket retailing. Competition among retailers centers on pricing, store location, variations in store format and merchandise mix, store size, shopping atmosphere, and image with shoppers. Further analysis provided by the following figure diagnoses the
Target stores are designed to be more attractive than large big-box stores. They have a tendency to have wider aisles, drop ceilings, a more eye-catching presentation of merchandise, and generally cleaner fixtures. Also, Target does not use music in their stores because they strive to deliver a distraction-free shopping environment for their guests. Firearms are not sold or allowed in Target stores which could be a major positive impact (Target Corporation, 2016).
Target achieved its differentiation in the marketplace by positioning its products and store experience as higher quality than its main discount competitors Wal-Mart, with lower prices than department stores. Target’s main focus is QUALITY product and at a LOW PRICE. It all began with the idea of, “fashionable, smart design…delivered at a competitive discount prices.” Target strives to deliver to customers a unique shopping experience. Target grabs customer’s attention by their big red bulls eye and customers keep going to target. But at the same time Target need to make sure that their shelves are stocked, they gave good customer service,
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.
Target sells a wide variety of general merchandise and food through the store and with the use modern technology. Target’s
having similar items, but targets do not have more than one store in a small city as where Walmart has about
ratios are low. Wal-Mart’s and Sears’ current ratios are 0.88 and 1.09. It appears that both
Target stores carry clothing, shoes, jewelry, health and beauty products, electronics, compact discs, DVDs, bedding, kitchen supplies, sporting goods, toys, pet supplies, automotive supplies, hardware supplies, and food. They also carry seasonal merchandise such as patio furniture during the summer and Christmas decorations during November and December. Many stores may also have one-hour photo processing, a portrait studio, an optical store, a pharmacy, and a garden center. Stores opened or re-modeled in 2004 or later also include the expanded snack bar that is featured in Target Greatland locations. These generally include a Starbucks Coffee shop, a Pizza Hut Express, and a Taco Bell Express in addition to Target's Food Avenue. It has also been reported that Cold Stone Creamery and Target have signed a deal to test in-store ice cream shops in four stores. The first few Target stores included leased supermarkets in addition to general merchandise, which during the time was a common practice by discount retailers as they attempted to offer a one-stop shopping experience to customers. Douglas Dayton stated in 1967 that "we believe that the discount-grocery store is a necessary ingredient in what we offer the customer. After all, food sales are about 40% of all department store-type merchandise sales, so the two kinds of stores go hand-in-hand and are
Ashley Murrell Tara Estes English 101 December 2, 2016 The Battle of Walmart, Kmart and Target In today’s shopping world, there are so many places people can go. There are stores that have everything you need in one place. Target stores are the newest to come up, competing with Walmart and Kmart, which have been around for decades. All of these stores have the same idea, but are, also, very much different. From the neighborhoods they are placed in, to their catch phrases, and prices. They all have services that are similar, and customer shopping experience. Each offers almost the same departments, but different layouts, sizes of the area, and brand names. Target the newest star to join the market; it has shown up in urban neighborhoods with spot light prices. Using the catch phrase of “Expect More, Pay Less,” they drew in a younger crowd. Target customers pay a little more than what those that shop at Walmart pay, but save more than Kmart customers. Walmart that came in after Kmart is known for their smiley roll back prices, and are the home of the “Save Money, Live Better,” catch phrase. They are found in most metropolitan cities, and along travel routes; thus making them easily accusable to travelers. Walmart comes in as the cheapest of these three marketplaces. Kmart and their “Blue Light Specials” are getting harder to find due to their closings nationwide. They once targeted the same areas as Walmart, and now they are few and far between. Kmart is also dead last when he
Target knows their customers want merchandise on the shelves. Target is always working on sourcing and adjusting their supply chain to make sure production, quality, capacity, pricing, and
In 1962, Wal-Mart was built sometime by Sam Walton in Roger, Arkansas. Wal-Mart has 5,100 stores and clubs all over the United States and a sum of 8,300 unit's global. The company was able to employ something like over 2 million associates from all over the world and about 2.4 million in the United States. Wal-Marts average annual total income rate was somewhat in excess of 10% for the three years from the fiscal year that is ending 2009 to the fiscal year ending 2011 (Blanchard, 2008). Research shows that they also had what was known as a stock split of 100 %; Wal-Mart was able to see this split 12 times all through the eras of 1973 through 2002. They have received many awards and were categorized 5th in Fortune magazine's "Global Most Well-regarded All-Stars" as the third most appreciated corporation in America (Wal-Mart, 2013)