Target: It’s All About Customer Service

Feb 03, 2005
George Anderson

By George Anderson

Target doesn’t mind a little stiff competition, reports the Los Angeles Daily News, even if it’s coming from itself.

In one area of Southern California, the retailer currently has four stores (a fifth one is on the way next fall) within a 15-mile radius. Conventional wisdom says the chain should be concerned about cannibalizing its own sales with stores so close together but an analyst with ThinkEquity, Edward Weller, says Target has a different motivation than most of its competitors. “It’s all about customer service for this retailer,” he said. “They like to open more stores so that their customers receive better service. Two of their highest-volume stores are right across the street from each other.”

A company spokesperson, Paula Thornton-Greear, said Target seeks “new opportunities in growth markets and areas where we’ve been successful. We consider a number of factors, including additional retail, demographics, economy, population and transportation.”

Moderator’s Comment: Who do you think are Target’s primary competitors? How would you rate Target as a site selector compared to other big box operators
both in and outside mass merchandising?

George Anderson – Moderator

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