"30% of Kmart's shoppers did not have bank accounts." But "Target is focused on a family of four earning $50,000 a year," in contrast "Wal-Mart's customers make $40,000 a year. Kmart's make $32,000. You tell me which chain is more attractive in the long run." (Mitchell, 2004)
Not only are Target's consumers more able buy big-ticket items, but also more affluent consumers are more apt to make impulse buys. Target stores have thus "recently started stocking more consumables - everyday products like soap and paper towels - and has put them near cash registers and in other high-traffic areas." (Mitchell, 2004) Target soon followed with Target Great land stores, which were bigger than regular stores and sold some groceries; in 1995, it opened its first Super Target, which includes a full supermarket. Cautiously it expanded, but surely.
Regarding the merger, one Target executive stated, "Kmart's chairman, Edward S. Lampert, hired Aylwin Lewis away from the fast-food operator Yum Brands to run Kmart just last month. Mr. Lewis has no retail experience but has been lauded for his knowledge of operations. But while he is credited...
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now