Last week Target announced during its media day that it plans on opening smaller-format urban stores with a square footage of between 60,000 and 100,000. The typical Target store is between 125,000 and 180,000 square feet.
But the African bid potentially should not garner as much criticism as it is receiving. It is yet another move in Wal-Mart's plan to target emerging consumers, says Craig Johnson, president at Customer Growth Partners.
While this segment of the world market won't immediately move the needle when it comes to earnings and top line, 10 years down the road it will be a big idea that Wal-Mart capitalized first.
Wal-Mart is already King of U.S. shoppers, and Johnson predicts emerging markets like Africa will position the company for decades of growth.Wal-Mart is also a large enough operation that the move into Africa shouldn't be a distraction to Simon and his team in the U.S., Johnson notes. -- Written by Jeanine Poggi in New York.
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