This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Wal-Mart And Target: A Tale Of 2 Discounters

To combat that, the retailer expanded its food offerings and began to emphasize low prices in its advertising â¿¿ two things that put it in direct competition with Wal-Mart. It also started a 5 percent discount program for customers who use its branded credit or debit cards.

But its focus on prices and groceries cost it some cachet, and its performance has been choppy. The latest results show that Target has found a balance between fashion and price. Target said Thursday that revenue at stores open at least a year rose 2.9 percent in the third quarter, roughly in line with Wall Street estimates.

For the fourth quarter, which ends in January, Target said that it anticipates adjusted earnings of $1.64 to $1.74 per share. That beast the $1.51 per share analysts expected.

"Looking ahead, we are confident in our holiday merchandising and marketing plans," Kathee Tesija, Target's executive vice president of merchandising, told investors on Thursday.

The difference between the two discounters is becoming more apparent during the holiday shopping season, as both discounters attempt to cater to lure different shoppers into stores.

Wal-Mart last week said it will offer deeper discounts and a broader assortment of merchandise. The company also started its holiday layaway program a month earlier than a year ago and lowered its fees for the program from $15 to $5.

The move seems to working. It has booked an additional $300 million in layaway business compared with a year ago. The company will record sales for layaway during the fourth quarter.

Target, on the other hand, is trying to appeal to higher-end shoppers.

The retailer is teaming up with luxury merchant Neiman Marcus to offer a limited collection spanning from fashion to sporting goods. More than 50 products from 24 designers, including Oscar de la Renta and Diane von Furstenberg will be available at both stores and on their websites starting Dec. 1 until they are sold out. Target is also bolstering its home area with names like Nate Berkus, which launched late last month.

3 of 4

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs