Target’s Business Model Proves More Profitable Than Its Competitors: Business Casual

 

With the pandemic drastically changing the landscape of retail, America’s largest chains have had to pivot on a dime. So who has emerged as the leader? Judging by profits alone, Target far outperformed its competitors. According to The Motley Fool, Target reported a 9.6% operating margin in the second quarter, compared to the respective 5.5% and 3.9% of Walmart and Amazon.

On this Business Casual snippet, hosts Daniel Litwin and Tyler Kern consider whether Target got lucky, or whether the company strategically set itself up for success.

Target’s success leads to two key metrics: convenience and custom products. By rolling out a same-day curbside pickup service, Target saw massive gains amid the pandemic as customers chose a fast and convenient method of shopping in order to stay out of stores. Target also retains customers with it’s unique in-store brands like Good & Gather and Archer Farms. By being a seamless, stress-free one-stop-shop, it seems Target has set itself apart from its competitors.

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