January 24, 2013
With today's online and mobile invasion, consumers can now do their shopping while in the comfort of their homes. They can also have the convenience of having the items shipped to their doorstep. Products found in online stores are also cheaper than those in retail stores. This trend is becoming a threat to the retail industry.
The holiday season is the most important season for retailers as holiday shopping constitute up to 40 percent of their yearly sales. To protect and increase its sales on the holidays, Target Corporation (NYSE: TGT) [
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, a leading discount retailer in the US, deflected the threats from online counterparts by providing exclusive products which encourage people to visit the stores, as these products cannot be found online.
Target also has their own online store, Target.com, to keep up with other online competitors. To further strengthen its online presence, Target recently announced its Price Match Policy, wherein the company will price match top online retailers for the whole year, including Amazon.com, Walmart.com, Best Buy.com, Toyrsus.com, and even its own online store.
Target's move to extend its online price match guarantee beyond the holiday season could be a big game changer. This new Price Match Policy clearly demonstrates the company's commitment to become leaders in both worlds, by aggressively going after market share in online selling. Furthermore, its introduction of Online Obsessions, a collection of online-only products exclusively offered at Target.com, is a way to distinguish Target from traditional retailers. Among other retail industry leaders, Target is the only retailer that recognizes the necessity of growing online sales.
The potential of the online market is undeniable. For Target, instead of settling with its flat revenues and continue with traditional retailing, the company is pursuing strategic growth alternatives by becoming a force in online sales.