Business Wars Target vs Walmart | Wardrobe Malfunction | 3
16 snips
Jun 14, 2023 In 2005, Walmart was reeling from a tough holiday season and needed a strategy to counter Target's growing success with chic fashion lines. The confrontation between their executives revealed Walmart’s bid to launch Metro 7 to reclaim shoppers. As Walmart celebrated growth, Target faced crises, including a staggering inventory inaccuracy that rattled operations. The battle for expansion in Canada further intensified the rivalry, showcasing how both giants navigated economic pressures and shifting consumer trends.
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Walmart's Coffee Maker Challenge
- In 2005, Walmart's CEO, Lee Scott, challenged his team to improve a coffee maker being outsold by Target's version.
- Within a week, a superior coffee maker was in Walmart stores, demonstrating the company's focus on rapid response.
Target's Threat to Walmart
- Target’s success with designer collaborations fueled its growth and threatened Walmart’s market share.
- Walmart aimed to neutralize Target by improving apparel style and addressing its brand image.
Walmart's Fashion Forward Push
- In 2005, Walmart opened a Manhattan design studio to develop trendier apparel, like the Metro 7 line.
- The company aimed to compete with Target's cheap chic offerings by incorporating designer collaborations.
