Why I Am More Bullish About Target

Retail
Written By Rick Watson

Target reported Q1 2021 earnings. I'll leave the results to the financial folks. I love the supply chain story personally, so let's talk about that.

  • In terms of comps to Walmart, I am more bullish on Target than Walmart. You can just tell Target sweats more details than Walmart. You can feel the number of improvements and it is obvious many of the ideas just come from their staff, who they value greatly.

  • The level of detail and specificity in Target's "stores as hub" supply chain is nice to see. You can always tell a well-run business when they understand the entire value chain and are working on each part to make it faster and more efficient. This has benefits in reducing cost, making employees happier, and improving customer experience. All wins.

In contrast, Walmart's approach to its micro-fulfillment strategy feels like a "silver bullet." I really detest this kind of thinking generally. The details matter, and if you aren't willing to understand and improve every last detail, your business will not improve. Fair/not fair? These are just impressions.

  • Target is looking to open a few larger format stores in the next year, in contrast to previous years, due to compelling real-estate opportunities.

  • 75%+ of digital sales are fulfilled by stores

Rick Watson

Rick Watson founded RMW Commerce Consulting after spending 20+ years as a technology entrepreneur and operator exclusively in the eCommerce industry with companies like ChannelAdvisor, BarnesandNoble.com, Merchantry, and Pitney Bowes.

Watson’s work today is centered on supporting investors and management teams incubating and growing direct-to-consumer businesses. Most recently, in partnership with WHP Global, Rick was a critical resource in architecting the WHP+ platform, a new turnkey direct to consumer digital e-commerce platform that powers AnneKlein.com and JosephAbboud.com.

Watson also hosts a weekly podcast, Watson Weekly, where he shares an unbiased, unfiltered expert take on the retail sector’s biggest players.

In the past year alone, Rick has spoken at many in-person and virtual events as well as podcasts on topics ranging from retail/ecom to supply chain/logistics and even digital grocery including CommerceNext IRL, ASCM Connect, and Retail Innovation Conference.

https://www.rmwcommerce.com/
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