How Target will try to crush Amazon and Walmart in toys this holiday season

Brian Cornell, the top target company (TGT) did not work when trying to get a big toy business in the holiday shopping season.

Cornell said to Yahoo Finance, "We already shot toys twice, so we will win the holidays." This is certain. Target announced this week that it will add about 245,000 square feet of new toy space to over 500 stores by November. The company is also planning to stock more than 2,500 new exclusive toys, twice the number of last year.

Importance: The bold move of the target is due to at least two reasons. A spokesperson for Target said to Yahoo Finance that its sales in the toy business increased for 17 consecutive quarters. It is therefore clear that consumers are interested in purchasing toys from discount retailers known for cheap and stylish clothing and household goods.

Also during this holiday season, there will be considerable toy business between two major retailers. The 2018 holiday was about $ 11.5 billion in sales in 2016 with the first toy, Toy R Us, not yet bankrupt in the past 50 years. Sears arranges 142 names into the same name and Kmart by the end of the year. It is a part of recent bankruptcy. If inventories of these stores are sold out, that is it.

These formerly formidable dealers' deaths were Target, and Wal-Mart and Amazon opened the doors to make further progress with this holiday season and 2017 toy sales.

Conclusion: Compared with the first half of 2017, the NPD group increased sales of toys in the first half by 7% to 7.9 billion dollars due to US economic growth. Toys' R'Us have disappeared, but this growth is even more noteworthy. So it is logical that the target is to actively promote toys this holiday season, and perhaps 2019. According to IBISWorld, retailers already account for about 17% of toy market share, so why not make progress with Wal-Mart (30% market share) and Amazon (16% market share)? .

In the overall picture, the target competitor must be very cautious. The stuffed toy portion of the holiday season seems to be a by-product of Target's planned launch in 2017 and plans to renovate 1,000 stores by 2020. Total investment in these changes: up to $ 8 billion. If most of the store remodeling is the same as the best games (more modern appearance, lots of new cosmetic parts, bright dressing room, wooden floor electronic components) in the author's home New York Bay Shore - fast

My goal is to fix one out of 100, the change seems very obvious $ TGT pic.twitter.com/NciP6IbaWt

Price cut competitors. One of Wal - Mart 's holiday strategies is to lower the cost of toys and attract consumers to the store. According to a survey, retail giants have an average 54% discount on popular toys compared to Amazon. In his bankruptcy petition, Toys "R" Us pointed out that Amazon does not care about earning money at the moment, so their pricing model can not compete with it. Toy "R" Us Famous families in the 1980s said that children "do not want to grow" their preferences have changed their hobbies for toys definitely. For example, there is pain in Lego, and Denmark's building block maker has shifted to online applications and games, and sales declined for the first time in 13 years.

Amazon continues to surpass retail competitors. Calls, J. While Penney and Target recorded the highest Internet sales ever recorded during the 2016 holiday season, Amazon continued to make more success and gained more market share. Wal-Mart, which bought Jet.com last year, accounts for only a small part of Amazon's sales.

Despite billions of dollars in e-commerce, Wal-Mart can not gain a large market share. Online sales of Wal-Mart in 2015 amounted to 13.7 billion dollars, Amazon online sales reached 107 billion dollars. According to the report, in only 2016, the Amazon accounted for half of the growth of the e-commerce sector during the holiday season. A major e-commerce company like Amazon continues to grow as it can transform, boost consumer volatility and improve the rapidly growing retail space. These participants are using big data and analytical solutions to make informed product decisions, improve demand forecasts, improve operational efficiency, and gain valuable insight into social media.