The importance of (your) Target

In contrast to the story I posted about Wal-Mart earlier this morning (see below), Target stores predict they’ll have their strongest quarter in three years, according to this report from Marketing Daily (click to link).

Implications: This is a good illustration about the importance of smart targeting (no pun intended).

One could argue that when people had to cut back, Wal-Mart was an attractive alternative. One could further argue that the store was an attractive destination for people who did not “have to” cut back, but wanted to cut back.

Now that the economy is turning, Wal-Mart retains those customers who were forced to cut back, but they might have little to spend. Those who decided to cut back during the depths of the recession might be finding their way back to less price-oriented providers… or to those retailers that might be seen as “balanced” between quality and price.

Mike Anderson