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Wal-Mart Crushing Target

By Kevin Spak,  Newser Staff

Posted Mar 14, 2009 11:18 AM CDT

(Newser) – In theory, Target should be thriving in the recession because it's a discount retailer. In reality, it's in a funk, even as rival Wal-Mart flourishes, reports Time. The difference? Target is viewed as a place to buy nice clothes at nicer prices—and right now, nice clothes seem like a luxury. Target’s profits fell a whopping 22.3% last year, while Wal-Mart has seen 22 straight months of growth.

The main problem is that Target devotes about 40% of its shelves to home and apparel, and less than 20% for perishables such as food and cosmetics. Wal-Mart devotes 45% to consumables. “Wal-Mart sells what you need to have,” said one retail consultant, “as opposed to what you want to have.” Target’s also dealing with a huge albatross: a credit division that saw profits fall 80.5% last year.

In this Dec. 6, 2007 file photo, a customer checks out at a Target store in Lombard, Ill..
In this Dec. 6, 2007 file photo, a customer checks out at a Target store in Lombard, Ill..   (AP Photo/M. Spencer Green, file)
The front entrance of a Target store in Cupertino, Calif. is seen Wednesday, Nov. 7, 2007.
The front entrance of a Target store in Cupertino, Calif. is seen Wednesday, Nov. 7, 2007.   (AP Photo/Paul Sakuma)
A shopper considers items at Wal-Mart, Tuesday, Feb. 17, 2009, in Danvers, Mass. Groceries are part of the reason Wal-Mart is killing Target.
A shopper considers items at Wal-Mart, Tuesday, Feb. 17, 2009, in Danvers, Mass. Groceries are part of the reason Wal-Mart is killing Target.   (AP Photo/Lisa Poole)
Wal-Mart employee Sean Blais moves shopping carts in the parking lot of the Wal-Mart store in Weymouth, Mass.,  Monday, Feb. 16, 2009.
Wal-Mart employee Sean Blais moves shopping carts in the parking lot of the Wal-Mart store in Weymouth, Mass., Monday, Feb. 16, 2009.   (AP Photo/Michael Dwyer)
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COMMENTS
Showing 3 of 5 comments
MoodyMommy
Nov 5, 2009 10:53 PM CST
Target does have nice clothes but high prices on everyday items. I shop for clothes a few times a year. I shop for everyday Items Once a week. The math speaks for it's self.
sache
Mar 15, 2009 11:06 PM CDT
Too bad, because i really like Target I hope they turn things around.
Guest
Mar 15, 2009 3:54 AM CDT
Target's a good store so I hope it survives. Wal-Mart's not easy to get to around here.

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