TARGET EXPRESS concept opening in Chicago...could itwork in downtown Detroit?

[Richard]

Do you know anything about how share evaluation works? Walmart and Target don't have the same amount of shares in circulation. A 2 for 1 stock split, for example, can make an $80 Walmart share $40 without changing it's market capitalization, and each shareholder would just own twice as many shares without changing their equity.


Links?

Just go to both stores and look at what they sell. Anyone can see where Target is heading. I compared the prices. A lot of the items at Target were 25-50% higher than local retailers or Walmart.



Based on what? Your dreams?

How are you offering no buy comments without doing simple research ?

Nix. International expansion forces domestic expansion , no expansion creats stall,you are forced to explore new markets not looked at before.

Bad economy wal mart does good target does bad,what does that say about a certain economy and where wal mart sees profit.

Target demographic is middle to higher low income,Wal-Mart is based on the mentality of cheapest is better even if cost more buying the same item over and over,but it is cheap today tommorow is another day.

They serve two different markets and two different mind sets and really should not even be mentioned as a comparison as there is none.

Did the OP say yaaaaa we are getting a Wal-Mart? That would be a leap backwards.

What is the highest traffic count and easily excessable location where you can draw from Midtown,Corktown,EV ect that can provide that demographic ? Find that spot to make a case.

[davewindsor]

How are you offering no buy comments without doing simple research ?

Nix. International expansion forces domestic expansion , no expansion creats stall,you are forced to explore new markets not looked at before.

Bad economy wal mart does good target does bad,what does that say about a certain economy and where wal mart sees profit.

Target demographic is middle to higher low income,Wal-Mart is based on the mentality of cheapest is better even if cost more buying the same item over and over,but it is cheap today tommorow is another day.

They serve two different markets and two different mind sets and really should not even be mentioned as a comparison as there is none.

WTF did you just say? Middle to higher low income?? Is that even a category?? Regardless, the cheapest stores are not Walmart, but the Dollar shops that offer no return policies. That's your invented lower "low income" category, which means Walmart is in the Target category. At least with Walmart, if a product is garbage, you can return it the following week, so there's at least some motivation for quality control vs. letting the buyer beware with Dollar shops. Most of the stuff sold at Walmart and Target are basically the same items made by the same manufacturers with different UPC codes or a different generic name. It's an apples to apples comparison. Target is not competing with the Macy's category; they are competing with Walmart. Regardless, whatever you just said, did not work because Target had to close all their stores in Canada and is now closing stores in the US.

Did the OP say yaaaaa we are getting a Wal-Mart? That would be a leap backwards.

Walmart wouldn't open up in downtown Detroit either. Their loss prevention department couldn't handle the losses....

[softailrider]

WTF did you just say? Middle to higher low income?? Is that even a category?? Regardless, the cheapest stores are not Walmart, but the Dollar shops that offer no return policies. That's your invented lower "low income" category, which means Walmart is in the Target category. At least with Walmart, if a product is garbage, you can return it the following week, so there's at least some motivation for quality control vs. letting the buyer beware with Dollar shops. Most of the stuff sold at Walmart and Target are basically the same items made by the same manufacturers with different UPC codes or a different generic name. It's an apples to apples comparison. Target is not competing with the Macy's category; they are competing with Walmart. Regardless, whatever you just said, did not work because Target had to close all their stores in Canada and is now closing stores in the US.


Walmart wouldn't open up in downtown Detroit either. Their loss prevention department couldn't handle the losses....

I heard that same thing about the Meijer loss prevention department. However, they seem to be doing pretty good with their one [[soon to be two) stores in the city. Looks pretty busy every time I go by there.

[davewindsor]

I heard that same thing about the Meijer loss prevention department. However, they seem to be doing pretty good with their one [[soon to be two) stores in the city. Looks pretty busy every time I go by there.

Quite off topic.

I'm talking about Target and Walmart. You're bringing up Meijer.

You are talking about a Meijer store at the edge of the city at eight mile with Ferndale right across the street. The OP is talking about downtown, 8 miles from there... Completely different environment. Not to mention the $16m in tax credits Meijer needed to build their first store so they wouldn't open up a couple blocks north in Ferndale.

Who knows what the results of the new Meijer store's losses will be at the Redford site; it's not even open yet.

I also haven't had much chance to price shop and compare Meijer vs. Walmart and Target as there isn't a Meijer location in Windsor. If they've got better pricing than Walmart, I say more power to them as that's how you run a successful and busy big box store that can compete with Walmart. Target didn't get it and that's why they went bankrupt in Canada.

[Dan_the_man]

Quite off topic.

I'm talking about Target and Walmart. You're bringing up Meijer.

You are talking about a Meijer store at the edge of the city at eight mile with Ferndale right across the street. The OP is talking about downtown, 8 miles from there... Completely different environment. Not to mention the $16m in tax credits Meijer needed to build their first store so they wouldn't open up a couple blocks north in Ferndale.

Who knows what the results of the new Meijer store's losses will be at the Redford site; it's not even open yet.

I also haven't had much chance to price shop and compare Meijer vs. Walmart and Target as there isn't a Meijer location in Windsor. If they've got better pricing than Walmart, I say more power to them as that's how you run a successful and busy big box store that can compete with Walmart. Target didn't get it and that's why they went bankrupt in Canada.

Dave,

You're missing a few things here. Meijer is definitely in the same business as Target and Walmart, though they do tend to have a bit more food. Also the Detroit Meijer would have never been built in Ferndale, there's nowhere to put it.

More importantly Target has a very different perception among many people compared to Walmart. Walmart is perceived as cheap and trashy where as Target is cheap, but trendy. For example, you can get stylish clothing at Target, but not at Walmart. The young crowd that is living in Detroit is the perfect target for Target. They have a limited income, but still like to look good, and Target does not have a stigma against it. I think a City Target would work out quite well, although I don't know where they would find a good place to put it downtown. Midtown or New Center would probably be better, especially once M1 connects all of those areas together.

[davewindsor]

Dave,

You're missing a few things here. Meijer is definitely in the same business as Target and Walmart, though they do tend to have a bit more food. Also the Detroit Meijer would have never been built in Ferndale, there's nowhere to put it.

I don't think I'm missing anything here. Why did Meijer need $16m in tax incentives to build a $20m store at 8 mile on the Detroit side? What kind of tax incentives do they get in other cities in metro?

More importantly Target has a very different perception among many people compared to Walmart.

Um, no they don't. My perception from day 1 was that Target is just another K-Mart that's going to compete with Walmart.

Walmart is perceived as cheap and trashy where as Target is cheap, but trendy. For example, you can get stylish clothing at Target, but not at Walmart.

You can get the same stylish clothing at Walmart. Walmart has designer labels like George London, Levi-Strauss, etc. It's no different. I see the same Hanes underwear on both stores' shelves. To me, stylish is Calvin Klein and neither Walmart nor Target sell Calvin Klein. I had to buy my Calvin Klein jacket at Macy's, or if I want to buy it in Windsor, Hudson's Bay.

The young crowd that is living in Detroit is the perfect target for Target. They have a limited income, but still like to look good, and Target does not have a stigma against it.

Are you kidding? If there's a stigma, they have the same stigma as Walmart.

I think a City Target would work out quite well, although I don't know where they would find a good place to put it downtown. Midtown or New Center would probably be better, especially once M1 connects all of those areas together.

It's irrelevant because it ain't happening in downtown, midtown, or New Center. I can guarantee it.

[detroitbob]

It's irrelevant because it ain't happening in downtown, midtown, or New Center. I can guarantee it.

Oh wise one...what is your guarentee?

[dtowncitylover]

I don't think I'm missing anything here. Why did Meijer need $16m in tax incentives to build a $20m store at 8 mile on the Detroit side? What kind of tax incentives do they get in other cities in metro?


Um, no they don't. My perception from day 1 was that Target is just another K-Mart that's going to compete with Walmart.


You can get the same stylish clothing at Walmart. Walmart has designer labels like George London, Levi-Strauss, etc. It's no different. I see the same Hanes underwear on both stores' shelves. To me, stylish is Calvin Klein and neither Walmart nor Target sell Calvin Klein. I had to buy my Calvin Klein jacket at Macy's, or if I want to buy it in Windsor, Hudson's Bay.


Are you kidding? If there's a stigma, they have the same stigma as Walmart.



It's irrelevant because it ain't happening in downtown, midtown, or New Center. I can guarantee it.

You know nothing. The perception of Target is nothing like the perception of K-Mart. In the minds of most Americans KMart serves the poor, working class, and maybe some middle class customers. Target serves EVERYONE. Look where the last KMarts are then looks where the Targets in the metro area. Target, besides the data breach, has no stigma. People like to shop there.

[detroitbob]

The 8 Mile Woodward Meijer is one of the most successful in the privately held, family owned company. The Meijer family doesn't release sales figures but they have indicated that even though the store is not open 24 hours it is a top performer. That led to the 2nd location going forward.