Target Financial Outcome: Expansions Will Have a Negative Financial Effect

Topics: Retailing, Economics, Marketing Pages: 2 (520 words) Published: February 27, 2011
Financial Outcome: Expansions will have negative financial affect Target’s revenues have increased steadily over the past five years, rising to $65.4 billion in 2009. Despite positive indicators of growth, other retail chains still pose a serious threat, and Target struggles to maintain competitive advantage. From a positive standpoint, Target is intensifying the vision to provide users with superior products by expanding existing stores and continuously incorporating new merchandise. Target’s expansion will likely prove positive for the corporation, but the possibility exists that the expansion will hurt Target due to the large price paid for the expansions (approximately $1 billion) combined with the current unstable economic conditions. The retail industry is dependent on consumer spending. Target’s history of having a higher and less stable debt to equity ratio indicates that it may suffer during troubling economic conditions.

Financial Outcome: Website will bring global expansion for growth in sales

All of Target’s stores are located within the United States. This limits sales opportunities for the corporation, and this is why Target has plans to expand mobile and online capabilities for shoppers as well as examining possibilities for international store expansion. Target already proved successful at this by opening stores in Hawaii and Alaska, outside the contiguous states. Target has always been a leader when it comes to innovative products. Target’s website is one area where creativity and innovation could be utilized. Target’s website as of now appears cluttered and navigation can be troublesome. Further development of the website would allow for greater control over the company image. Also, website statistics could be manipulated into usable information for the company. This would certainly deliver profitable market share growth in the upcoming years.

Financial Outcome: No increase or decrease in sales

Target’s main marketing strategy is...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay about financial
  • Financial intermediaries Essay
  • financial planning Research Paper
  • Essay on financial management
  • financials Essay
  • Financial Essay
  • financial Essay
  • Essay about Financial

Become a StudyMode Member

Sign Up - It's Free