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.
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