Retailer and and Visual Merchandising Paper Example

a. What economic factors and environmental factors (if any) are affecting the retailer?

One economic factor that has affected the retailer in the past is labor costs. Since 2015, the retail store has been under pressure to raise its minimum wage from 9 dollars to 11 dollars. The company has also been pressured to stop dealing in items which contain polyvinyl chloride. Target competes with Kmart and Walmart. There is, however, a general perception that the company's products are more expensive compared to other discount retail stores. Majority of its customers are also female.

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b. What are the competitive pressures, evolving and emerging technologies, effects of online selling, changing demographics and buying preferences, consumer behavior issues, and image issues affecting this retailer and how it conducts business?

The retailer is working at enhancing their workers' safety and enhancing the lives of more than 3 million people in the factories and communities near their factories (Target, 2013). The company plans on increasing its revenue through advertising and opening up of more stores in different locations. The company is constantly expanding. Every year, it establishes 70 stores in a bid to attract more customers. Target is the second largest retail discount store in the United States after Walmart. However, the company has been more profitable compared to Walmart. For instance, its gross profit and net profit margins are better compared to Walmart.

f. What parts of the business are growing and generate the most revenue?

g. How is your retailer seeking to increase revenue in the future?

One thing that can be done to improve the target's profitability is expansion into newer markets both locally and internationally.

Store Layout, Design, and Visual Merchandising

Target aims at ensuring its stores are presentable to the customers. In one of the stores I visited, I noticed that there were wide aisles and drop ceilings. The merchandise was presented attractively. On the roof of the store, there was a painting of a bull's eye. The arrangement of the store made it very attractive to young adults and adults of middle ages. The store that I visited met all the expectation I had. Its ambiance was consistent with the goods which had been stocked. The spotlighting and grey color schemes created a serene and relaxing environment. It was, however, the curved aisles which I found to most interesting. They resembled woodland pathways, and I found that they encouraged customers to explore the store and shop more. The company uses a "racetrack" layout in all its stores (Mirzayev, 2015). There is usually one main aisle and other smaller aisles which run through the centers.

This type of layout ensures the stores have sufficient space for display purposes. It also makes it easy for customers to find anything they need in the store (Harrison, 2017). The manner in which Target has organized its products makes the shopping experience very easy. The store aims at enhancing convenience during shopping. Customers who visit target stores to shop for everyday products do not have to move around the store very much as they can easily find the products they need at the front of the store. The company also groups similar sections close to one another. For instance, electronics, entertainment goods, and toys may be found close to one another to increase the convenience of shopping. I believe target can improve the customer experience by promoting guest interaction with goods.

Internet Retailing

I found that shopping on the internet was not as fulfilling as shopping in the local store. Even though shopping online was more convenient, I missed out on enjoying the ambiance usually found in the local stores. Shopping on the internet also denied me the chance to touch and feel the product which I was purchasing. Internet shopping has several advantages. For instance, many internet shoppers do not spend money buying gas and do not have to wait in long queues while checking out (Montaldo, 2004). The other significant advantage is that online shoppers can shop at any time of the day. One disadvantage of internet shopping is the inability to inspect the goods being bought physically. The design of the website dramatically influences the internet shopping experience. Websites should be easy to use so that many people can easily shop.

References

Harrison, O. (2017, March 14). Target Is Changing Its Layout & It's Good News For Grocery Shoppers. Retrieved from https://www.refinery29.com/2017/03/146825/target-new-store-layout

Mirzayev, E. (2015, July 7). Target Vs. Walmart: Who's Winning The Big Box War? Retrieved from https://www.investopedia.com/articles/active-trading/070715/target-vs-walmart-whos-winning-big-box-war.asp

Montaldo, D. L. (2004, September 24). When It Is Best to Shop Online and When It Is Not? Retrieved from https://www.thebalance.com/the-pros-and-cons-of-online-shopping-939775

Target. (2013). Then & Now: Target's Store Design Philosophy. Retrieved from https://corporate.target.com/article/2013/07/target-store-design-philosophy-then-and-now

Trainer, D. (2017, January 25). Target Looking Better Than Wal-Mart For Investors. Retrieved from https://www.forbes.com/sites/greatspeculations/2017/01/25/target-looking-better-than-wal-mart-for-investors/#5b8b639b42bb