Today’s discount retail market has changed over the years, causing the industry to explode with competition. Companies like Wal-Mart, Target, K-Mart and Dollar Tree are fighting to be recognized by consumers as the business of choice for their shopping needs. Today, the discount market faces pressure of how they can stand out above their competition in order to provide consumers with a unique and unusual shopping experience.
The Dollar Tree has worked over the years to differentiate their business model in a market that has become saturated with discount shopping centers. In order for the business to continue to distinguish itself in this industry they must analyze the market and its environment. Since their concept is to offer their products
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With the acquisition of Family Dollar they are providing additional product lines to their business while also pulling in one of their market rivals. But as with any industry the Dollar Tree must continuously analyze their strategy against the market. With the hype of online retailers, consumers now have the ability to look further for discounted prices and convenient shopping experience. The Dollar Tree must understand that consumers are not just looking for discount prices; they are also looking for the experience. With many of their locations in middle to lower income areas, they need to enhance their brand image to attract a more diversified consumer group. Although their business model has provided them with success in the past, it would benefit them to use this merger with Family Dollar as an opportunity to upgrade their brand with a fresh new buying experience for consumers. Dollar Tree’s immediate strategic opportunities for operational improvement and near-term opportunities for synergies are to focus on improvements in sourcing and procurement, which should help lower the costs through scale, increased direct-to-factory sourcing and increased efficiencies through global sourcing and supply-chain operations (Thomas,
Dollar Tree’s acquisition of the Family Dollar stores will better equip them to compete with the leaders in the market such as Wal-Mart, Target, and Dollar General. The acquisition of Family Dollar establishes a new giant of the dollar-discount industry; Dollar Tree will expand significantly to 13,000 stores throughout the United States and Canada (DollarTree.com, 2015). This acquisition also increases Dollar Trees’ access to markets with lower incomes, increases their buying power and their ability to negotiate greater discounts from suppliers while still discovering ways to reduce
Macy’s intended to deliver enhanced shopping experiences to its consumers through dynamic department stores and online sites. In this regard, the company developed a North Star strategy that allows it to improve its sales growth and to develop its existing core activities. The company’s consumer research monitors, analyze and anticipate their needs and wants based on the changing market trends. This allows it to strengthen its customer base and also helps it in identifying new markets and customers. Macy’s also identifies different styles and designs based on various occasions and events that allow it to capture the changing preferences of its customers. The company also celebrates various iconic events to interact with its customers which
This nationally recognized mass merchandiser that stood as Kohl’s other leading adversary in the market has everyday low prices that were able to compete with Kohl’s promotional events. Wal-Mart also outdid their competition when it came to number of store locations around the country. The weaknesses of this reputable company come to light when shoppers are looking to buy clothes and are not presented with nearly the selection that the department store can offer. Also, their service is not considered to be as helpful as the department stores that can input more expertise when trying on
Target stores, inc.is a sister company of Dayton Hudson Corporation and started in the year 1962 the same year as two other large retail stores Wal-mart and Kmart. Target has always operated with the motto “ Expect More and Pay Less” target is the third in the big three in U.S. falling behind Wal-Mart and Kmart.a major part of target's success comes from its ability to bundle bargain prices with fashionable name brand merchandise with excellent customer service. Dayton’s department store started looking into Target as a discount chain in the year of 1962 when the company saw a rising in public demand for lower priced merchandise in a family friendly and convenient environment. The name target along with the bulls eye logo were selected for the company's visual impact also to show that target aims at offering
After co-branding the Macy’s name with local Federated stores in 2003, the Macy’s division became the central focus for revamping. Federated descri...
Historically, Dollar General operated in a highly price sensitive market segment, with 55% of its consumer base earning an average annual gross income of less than $40,000.[2] To attract these customers, Dollar General employed an Everyday Low Price strategy similar to Wal-Mart’s. Thus, keeping costs low and driving high traffic volumes were critical to the company’s financial success. Dollar General achieved this strategy in several ways, including keeping rents and labor costs low, locating in low-income, high traffic areas that offered consumers few substitutes, and offering a wide variety of popular CPG and white label goods.
Recommendations to achieve a sustained competitive advantage: Online, mobile, and store purchase will certainly increase customer traffic with the online and store combinations gives Target Corporation with a best possible low-cost price. A best-cost provider strategy allows Target to position itself and compete with low-cost providers such as Walmart. In addition, it employs a competitive strategy with a designer label along with superior supply chain, increased operational capabilities, and skilled employees. . The strategy of sending coupons are huge for a customer, so increase discount based on their purchase history and use the store brand credit card to attract more customers.
Dollar Tree is an American chain of discount variety stores that sells items for $1 or less. Dollar Tree competes with other bargain stores like The Dollar General and Fred's retail stores. K&K Toys in Norfolk, Virginia was the original mall that the toy store started from. That toy store grew to over 130 stores on the East coast, which later would serve as the foundation for what expansion of the dollar stores. It was not until 1993, the name of the company “only $1.00” was changed to Dollar Tree Stores (Ziobro and Banjo, 2014). While increasing in popularity, Dollar Tree acquired Dollar Express in 2000, establishing in the process a new Distribution Center in Stockton, California. Dollar Tree with their best years ahead, earned a spot in
The company had to be the second largest retailer shop in the US; it has many advantages that come along. The customers well acknowledge the company and its brand have been well established.
In general merchandise retailing, Wal-Mart’s primary competitors are Target and Kmart. Retail superstores such as Circuit City and Bed, Bath, and Beyond, also provide retail competition. A survey found that the majority of respondents favored Wal-Mart over stores like Target and Kmart. Respondents claimed Wal-Mart offered lower prices, better variety and selection, and good quality. The needs of consumers is an important economic feature in all competitive environments. What attributes (price, variety, quality, etc.) prompt buyers to choose one retailer over another is very important in the competitive landscape.
Toys R Us ventured into a partnership with Amazon.com to improve the e-commerce division of their business. Internet retailing was cutting into the profits and the market share of Toys R Us. This financial effect was the reason they the needed to improve and establish themselves in the Internet market. This Internet market was clearly the way the trend was going, as indicated by the growth of retailers such as eToys.com and SmarterKids.com. Toys R Us needed to establish itself in this market, since bricks and mortar retai...
When a business aims to be as successful as possible in selling its products and services, it must examine in detail whether or not the products will be attractive and necessary; if the price is optimal; if the product is being distributed in the best locations; and finally, how interest and awareness can be created for the products. In order for a business to target all of these elements at the right people at the right time, it must employ the right type of marketing mix: Product, Price, Place and Promotion.
Few companies create such controversy as Walmart has done with its approach to maintaining low costs for everyday items. People either love Walmart because of this approach to keeping prices down or hate it due to the effects it has on the economy. There are a lot of arguments surrounding the minimum wage and employee rights at Walmart. There seems to always be a news article about some employee protest about the wages or how they are treated. Walmart is viewed as an enormous firm that does not take care of its employees because of its minimum wage, treatment of its employees, and how it deals with lawsuits.
Another thing to consider is a statement made on CNNmoney.com in regards to Dollar Generals consistent store growth that they are only "cannibalizing sales at their other stores and eroding their profits"
• Reflecting on their ability to offer products and services which meets their customers’ needs and requirements.