Impact On Supply And Demand At Target Corporation

Target Corporation is the second largest discount store in the United States, just behind Walmart who takes first place. An important part of what makes this store so popular is the supply and demand of certain products they offer and the quality of these products. There are two important variables that affect both supply and demand. The variables that have an impact on supply are the wages that are paid to workers and the price of key inputs. While the variables that have an impact on demand are customer income and the prices charged for goods sold at Target. By having a clear understanding of these variables and how they impact Target, we are able to understand current and future market conditions which can potentially help increase future

The first variable is the wages that are paid to workers. The average for an employee that is not in management is $8.71 an hour, but this can be higher or lower depending on the job position. The average for an employee that is in a management position is $16.29, and this can also by higher or lower depending on the level the individual is within the management arena at Target (Glassdoor, 2014). This variable could be seen as having a positive effect on the supply, because even the lowest pay on a team member’s hourly salary tends to be higher or equivalent to most states minimum wage. This could in turn provide a better work environment, because employees are able to have an easier time making a decent or semi-decent living for themselves and their family. The results of having happier employees’ means customers will want to shop their more and more, which will increase sales and allow Target to make more money as a corporation each

This is currently a touchy subject in regards to Target, because over Black Friday this last year many shoppers had their credit card information compromised while shopping in stores. This has caused sales to go down slightly, as customers are unsure as to whether or not they were affected and for how long they had potentially been compromised. However, even with this issue Target is still seeing growth within their sales, by 47.88% this current quarter (Hoovers, 2014). This has a positive impact on market equilibrium, because it means that as a whole, they are doing well in terms of managing their supply and demand which can impact how well they are