Technology and its impact on Retail stores
The owner of a top retailer wants to see which merchandise is selling which isn’t, or maybe the owner wants to know their overall margin costs in relationship in to which products on their shelves are more profitable then the others. In the not so distant past these types of reports would have required a lot of people, processing large amounts of data, and requiring lengthy delays in the results from weeks to even months. In the end, by the time the data was of any use it would have been out dated. In today’s markets, such retailer’s like Target rely on technology. With the current economy, and the number of business being forced to file for bankruptcy and ultimately closing their doors forever, now more the ever businesses need to gain a competitive advantage over their competition. Technology plays an important part in the daily functions of businesses today. In today’s challenging retail markets businesses must utilize all conceivable technology advancement in order to maintain a competitive edge. Having a competitive edge allows retailers to utilize data to make their business run more efficiently, and avoid potentially costly mistakes. When retailers, such as Target can gain insight to their target demographics, especially ensuring their target market has the products at the price that meet their customer’s expectations and also maintain their profit margins is when a win-win scenario is made. Technology impacts our daily lives, and it has a profound impact on retailers’ department stores such as Target. Demographic
It has been reported that nearly every American home contains some type of computer, be it is a laptop or personal computer. This type of data is just one example of the type of information which is available. A retailer such as Target, or Target Corporation operates a large general merchandise and food discount stores primarily located in the United States. The main headquarters are located in Minneapolis, Minnesota, and currently has 350,000 employees and as of January 2009, the company recorded revenues of approximately 65 million. It wasn’t until 1967, that Target became a household name, and currently 97% of American Consumers recognize the Target Bullseye logo. If we were able to turn back the clock, and predict the current economic condition, I don’t believe any company, could be prepared unless, a company has the foresight to look and anticipate change, and the needs of its guests. The company’s long standing history of providing quality brand name items has attracted a specific target clientele since 1902. Target spent a great deal of time and effort to determine the type of shoppers it was attracting. In order for the organization to be able to meet their guests’ needs, the corporation had to first understand who their target audience was. Target’s base clientele are primarily younger, female, and with children. The average approximate age is 41. Also, of note is the educational level which is considerably higher than that other retailers, approximately 80% have attended college, and 48% have completed. This alone, puts Targets’ clientele in a more affluent status, with an average, customer base salary of approximately $63,000 per year. Turning our focus now on to Wal-mart, establishing it self as a low-cost middle-American retailer of choice is the way Wal-mart has climbed into world wide fame. Wal-mart was founded in 1962, by Sam Walton. Starting in Bentonville, AR, Walmart offered its customers value and savings greater than their competitors, by buying larger quantities of merchandise from its competitors. This enabled Wal-Mart, to find a niche in the retail market unlike anything else during that time. While other retailers’ were marking up their products to maximizes profits Wal-mart, achieved higher sales volumes by keeping his market up minimal and therefore less than his competitors. Within a span of 5 years from the...
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