Comparing Walmart and Target Capital Expenditures

A snapshot of the Net Margins for Wal-Mart Stores Inc. is shown below: Net Margin Wal-Mart 2010 3.90% 2011 3.50% 2012 3.60%

Target has been a successful retail company coming in 2nd place behind Wal-Mart. Although these success comes in many forms there are factors that deter Target from ever reaching first. Target Corporation has run into a few weaknesses in the recent years. These weaknesses that Target are facing can impact their future goals. These weaknesses include lawsuits that Target is facing with the recent events and not having an international presence.

Target Corporation was founded in 1902 and headquartered in Minneapolis, Minnesota. Target Corporation operates general merchandise and food discount stores throughout the United States. The company’s products range from household essentials, to electronics, to toys, to apparel and accessories, to home furnishings, to food and pet supplies. Most of the merchandise is sold under Target and SuperTarget trademarks, but it also sells under private-label brands, such as Archer Farms, Circo, Merona, and Room Essentials. The company also offers merchandise through programs like ClearRx, Great Save, and Home Design Event. Additionally, Target markets its merchandise under license and designer

Wal-Mart and Target are both great retail stores to go and find a good bang for your buck shopping experience. After researching both companies, it appears they have the same ideas as a mission, saving the customer money. Wal-Mart Mission statement reads;

The companies I am studying are Wal-Mart and Target. Both are major discount retailers, general merchandisers who compete as cost leaders. These companies both very large, big enough to execute on their strategies effectively. Yet one has chosen the path of international growth and the other has not yet, pending expansion into Canada in 2013.

1. Their uses of cash were primarily used for paying off debt and investing it in marketable securities. Also they spent some of their cash on fixed assets. Even though their ending cash was lower than the previous year, they were using their cash effectively.

Since 1962 and the beginning of the discount retailer market Wal-Mart has been ahead of the retail game. By 1967 there were 24 Wal-Marts that had grossed 12.6 million dollars. In just 7 years Wal-mart had spread into 9 states. By 1979 Wal-Mart was the fastest store to reach a billion dollars in sales. In 2005 Wal-Mart has 3,800 domestic stores along with 3,800 stores internationally, and had made over 312 billion dollars. As you can see the Wal-Mart empire has grown monumentally. To move into this segment of the market would be tough.

US faced a major recession during the year 2007 and this created a major pre-recession impact and post-recession impact on various retail stores. Customers started looking on for deals in retail market as they had less money to spend. The following document is all about the growth of four major retail giants namely the Kohl’s, Target, Walmart, and Macy’s whose growth over the period 2003 – 2013 are compared and contrasted. Walmart was the only company to increase in sales from the all the above companies as they targeted the lower end customers.

and Wal-Mart Stores, Inc. to raise capital. Each company has bonds, preferred and common stock; to help in determining if capital should be raised. According to Block and Hirt (2005), bonds are debt instruments that have a fixed life and must be repaid at maturity. Preferred stock is the leased used because the dividends are not tax-deductible. Common Stock is sold because companies are seeking new equity capital. For Target, the peak from November to the end of December is when the company’s working capital is at its greatest. Based on the Annual Report for 2007, the increase in working capital during this time is typically financed with cash flow from operations and short-term borrowing. Target’s common stock has increased from the year 2003-2007, but decrease from 2007-2008 (fiscal years ending in February). Every stock and bond affects the equity of the company. Target wants to minimize there borrowing cost by ensuring liquidity and access to capital markets, to keep the balance of debt maturities under control, and manage net exposure to float interest rates. The 2007 annual report shows as of February 2, 2008 the number of securities to be issued upon exercise of outstanding options was 30,552,976 and the number remaining available for future issuance was 36,190,569.

Accounts receivable for Wal-Mart is 9 days and Target’s is 6 days, and the industry is 17 days.

Two companies I believe have demonstrated their marketing ability using social media are Target and JC Penney. Both companies have struggled to keep up with the changing demands of consumers but have recently made impressive changes to encourage customer satisfaction. For example, Target has introduced new brands and JC Penney offers rewards points for shopping. Both stores offer a convenient app that allows users to find coupons for their purchases.

Aimee Rong Mr. Wisotsky March 4, 2015 Why consumers like Target more than Walmart Walmart is famous for its cheap prices, convenient all-in-one superstores but notorious for its unethical employment policies, devastating impact on local communities and disastrous environmental impact. When asked whether one would rather shop at Walmart or Target, a rival competitor, many consumers confidently replied, “Target”, rather than Walmart. In the public scene, Walmart is seen as a negative force in a community while Target is seen as a positive and supporting force in the community. Given the difference in public opinion of the two rival companies, it is surprising that behind the cultural stigma, Walmart and Target both share a similar set

This report is intended analyze and compare the operating profitability of Sears, Roebuck and Co. (SRC), and Wal-Mart Stores Inc. (WM) for the accounting periods of 1996 and 1997.

In 1962, Wal-Mart was built sometime by Sam Walton in Roger, Arkansas. Wal-Mart has 5,100 stores and clubs all over the United States and a sum of 8,300 unit's global. The company was able to employ something like over 2 million associates from all over the world and about 2.4 million in the United States. Wal-Marts average annual total income rate was somewhat in excess of 10% for the three years from the fiscal year that is ending 2009 to the fiscal year ending 2011 (Blanchard, 2008). Research shows that they also had what was known as a stock split of 100 %; Wal-Mart was able to see this split 12 times all through the eras of 1973 through 2002. They have received many awards and were categorized 5th in Fortune magazine's "Global Most Well-regarded All-Stars" as the third most appreciated corporation in America (Wal-Mart, 2013)

Spending on longer-term assets has not fluctuated much for the past two years. This means they are not putting much money into production. A good deal of profit is spent increasingly on research and development and financing