Target Corp. (NYSE: TGT) vs. Wal-Mart Stores Inc. (NYSE: WMT). As Georges Yared wrote in our Battle of the Brands special, Wal-Mart is the behemoth, and Target is a rising titan that could pose a substantial threat to its dominance. I've always thought of Wal-Mart as being the better logistics company, and Target is better at retailing and merchandising. Target's runaway success in fashion, and Wal-Mart's dismal failure provide evidence of this.
In March, I wrote about Target's hottest couture showing up on eBay, often at several times its retail price. Well Wal-Mart's latest foray into fashion won't be showing up on eBay, but you might be able to find it at your local dollar store sometime soon, as several hundred of the stores that stocked its Mark Eisen line have pulled it due to lack of consumer interest. Part of the problem was a lack of promotion, and most Wal-Mart shoppers don't know who Mark Eisen is. As portfolio manager Patricia Edwards told the Wall Street Journal (subscription required), "Wal-Mart is so good at providing things based on price that I'm not certain they've yet grasped how to promote items that aren't solely based on price."
One of the problems I think Wal-Mart's having is that, without brand recognition, the products just aren't that great, or even that cheap. I don't buy clothing at Wal-Mart, but not because I'm a snob. You can usually get nicer stuff for less money at TJMaxx or Filene's Basement if you're willing to look around a little.
Target was able to come up with looks that were stylish and weren't available elsewhere. Wal-Mart's trying to compete on price in the fashion industry, and I think it's probably destined to fail.
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Reader Comments (Page 1 of 1)
5-21-2007 @ 11:40PM
HAYWOOD said...
Walmarts price point selling will never go over in fashion. EVER. You can beat as many vendors over the head as you want and lower the price, but in fashion, once that price hits Walmart,it is no longer an "in" look, but rather a McDonalds clothing statement. Walmart needs to stick to durable consumer good and stay out of fashion. Nobody in fashion wants to be a Walmart icon unless your selling farmer jeans.
5-21-2007 @ 11:39PM
brenda said...
I don't buy at Walmart because of the low pay they pay their workers-and don't give them full time
So they can't get benefits
I shop and love Target
5-22-2007 @ 1:20AM
Robert said...
I wish Wal-Mart would stock a better selection of Farmer Jeans then...or keep at least more than one size of carpenter's jeans in stock and on the shelves. Seriously, folks, the Wal-Marts in Orlando, Florida are always disorganized, unstocked and sadly short of customer service staff. Logistics? Yeah, in Wal-Mart's eyes it reads this way: 'People are the New Cattle.'
5-22-2007 @ 1:23AM
Cindy said...
It seems to me that people jump at every opportunity to bash Wal Mart. I buy clothes there and Know lots of other people who do as well.
5-22-2007 @ 1:21AM
donald r said...
yes, wal mart is good for the farmer jeans look and the sluts-are-is attire.
wal mart cannot compare to other large retail stores ref. quality of "associates", professionalisms and biker look. i'm living in a small "dump" of a town that seems to love the wal mart quality. yes, shelves are never full, but there's always stocking carts in the customer aisles, but not much indication of anything being stocked. "associates" are usually standing around and talking and not doing what their position says. wal mart apparently does "scrape the bottom of the employment barrel" when selecting personnel to represent their stores. wal mart can take all the low life types to earn a sub standard wage and little or no benefits. i wonder if wal mart give prospective employees some form of IQ test?
there's no comparison with target. cleanliness, quality of merchandise, attentive personnel and "taking care of business.
5-22-2007 @ 1:22AM
Junior said...
What I like about WalMart is that I can buy overalls in a 52 inch waist with the shorter leg length that I need...and they just opened a McDonalds inside the store which makes life real good around here. Just wish they would bring back the McRib sandwich. God bless America!
5-22-2007 @ 1:23AM
Lee said...
I don't shop at Walmart, they have gone over the edge by mistreating employees and their clothing line is terrible..They come on strong in the beginning and when the money starts flowing in they forget who is working to bring that money in," the employees are and they aren't being recognized for it..Companies are making big bucks by not paying for insurance or decent wages, just goes to show you the little people don't matter when there is dollar signs in Walmarts eyes...They should take a look at the crappy, inconsiderate managers they have here in Montana. The managers are so rude I wouldn't work for them even if they did pay decent wages....So much for ROLLING THOSE PRICES BACK.!!!!!!
5-22-2007 @ 1:21AM
Carolyn said...
I have shopped at walmart and the clothes suck the are made of a lesser guality than other stores. You no the old saying you get what you pay for. If you want clothes that won't make it through one wash or look like you bought them from a second hand store then go for it.
5-22-2007 @ 1:21AM
Karen said...
Walmart is great for buying baby-Ts, thongs and daisy dukes which is all I wear. I also can score my smokes and beer at the same time if need be. Where else can you meet cute guys with a steady job that will take the time to talk to you? At Target the guys act like there too busy to even speak to you. Thats why it is Walmart 4me 4ever baby!!!
5-22-2007 @ 1:23AM
Tammy D said...
I remember wanting to go to Walmart now days I dread it. The stores here in Pensacola Florida
are a mess. After making way around the boxes pallet jacks and such then you stand in line. Its not uncommon that out of 30 lanes in the store they may have 6 open and 4 of them are express. I hope another retail store opens and gives them something to worry about.
5-22-2007 @ 3:23AM
billyjoebob said...
5. yes, wal mart is good for the farmer jeans look and the sluts-are-is attire.
wal mart cannot compare to other large retail stores ref. quality of "associates", professionalisms and biker look. i'm living in a small "dump" of a town that seems to love the wal mart quality. yes, shelves are never full, but there's always stocking carts in the customer aisles, but not much indication of anything being stocked. "associates" are usually standing around and talking and not doing what their position says. wal mart apparently does "scrape the bottom of the employment barrel" when selecting personnel to represent their stores. wal mart can take all the low life types to earn a sub standard wage and little or no benefits. i wonder if wal mart give prospective employees some form of IQ test?
there's no comparison with target. cleanliness, quality of merchandise, attentive personnel and "taking care of business.
Posted at 1:21AM on May 22nd 2007 by donald r
That's funny. A friend of mine used to work at your so-called "high end" Target. Now she works at WalMart. As far as IQ tests, it doesn't take one to get online and spread hate and discord; which is something you seem to excell at. You say you live in a "dump" of a town and shop at Target?...Well, you imply that you have shopped there long enough to know of the state of the store whenever you "always" go there. I suggest if you don't like it so much, why don't you take some initiative and open up a store; like Mr. Sam did and start some competition. Although, it went downhill after Mr. Sam died, I'll bet you don't have enough motivation to get off your duff and actually do something about it. As a matter of fact, I am working there myself and am going to school to better myself. I won't sink to your level and I try to be a Christian about things, so I will just leave it at that. Don't be such a hater. I know your life doesn't look like much now, but try to do something with it and you'll be surprised at the results. Trust in God.
5-22-2007 @ 7:30AM
Katie said...
I find that Walmart stocks clothes for larger size women and teenagers. I am in my mid 50's and wear a size 8 or 10 misses and they just don't stock clothes appropiate for me. Plus you have to look all over the store to even find the misses section.
The quality varies but on the whole it is not very good. I wish they carried a better assortment for someone like me as I would buy from Walmarts' if they did.
5-22-2007 @ 5:47PM
Jeff said...
when I purchased my shotgun at walmart just last week (great price) it was great to find natty ice for only $11 for a 30 rack. I got two thirty racks, and a couple long hunting knives for my kids. we went out to the desert in my 4x4 and caused sme havok on some poor rattlesnakes. me and my children were so drunk i lost my job the next day. the only thing i was upset about was that walmart wouldn't sell me music with curse words for my 3rd kid with my other wife. for his birthday. he says his tunes looses its edge without bashin minoritys the way its supposda.
5-26-2007 @ 1:32AM
cathy said...
One of the reasons target is ahead on the clothing is because they carry more sizes in womans wear. I am a size 0 to 1 and I can never can find anything at walmart but always find it at target. Also target must have better buyers because they are more in tune with fashion.