New CEO of Target (NYSE:TGT), Brian Cornell and head of Wal-Mart (NYSE:WMT) U.S. operations, Greg Foran mutually agreed that their businesses are run-of-the-mill. Previous instances of despair like security issues in customer data at Target (NYSE:TGT) and labor concerns at Wal-Mart (NYSE:WMT) need mending.

In order to obtain a higher standard of ecommerce results, they are aiming to employ digital technology. They are well aware of the fast moving trend of personalization technology, social strategies and mobile applications.

The key objective for both the companies however, is still to figure out how to attract more customers. Analysts are pushing both the companies into selling off several stores; Target (NYSE:TGT) having around 2,000 compared to twice as much as Wal-Marts (NYSE:WMT) in the U.S. These corporations however, have discovered that not many potential buyers exist for such assets. Nevertheless the main advantage that these stores have over e-commerce ventures like Amazon Inc (NASDAQ:AMZN) is the brick and mortar presence.

Therefore emphasis must be placed on how to draw in customers in order to promote these physical entities. These brands must focus on giving customers motive to approach them physically. Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) should accept their capabilities and mold them into something beneficial.

Low margin and high volume outlets such as these can easily experience a higher customer pool by offering exclusive prices. In order to start this appeal, a high-end product that cannot be bought electronically should be let out into the market. It is without doubt that both Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) have gone the extra mile to sell products to customers in various forms. This is highly vital in an ever changing market that is built on providing top-notch customer service but considering that the main advantage of both the stores is its physical presence, the store experience can be made distinctive. With rotation of items on shelves and special buys, customers may be intrigued to visit more often.

Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) have included exclusivities by adding pharmacies and a photo finishing booth. Other helpful services like these should prevail in the stores for better repute and sales.

Another type of store-only facility is the try-it-before-you-buy-it experience. This gives customers a security over products and the opportunity to try the products thus reducing perceived risk.

Exclusive promotions may also generate store traffic. Pricing for different channels is significant but it is important not to exclude various promotional activities because of this. Target’s (NYSE:TGT) promotional area of Dollar Spot already considers this. However, similar activities may be carried out by having a special section of different products that are limited for availability and pricing. This will create hype in the market because customers will be delighted to purchase a product that has a limited time period in the store; for example an hour.

Wal-Mart (NYSE:WMT) and Target (NYSE:TGT) must make themselves destination points for shoppers by developing better strategies and enhancing their capabilities. Customers will always value experiences and using stores only as means for revenue generation and product fulfillment doesn’t do them justice.

 

Get Free Updates and Stock Alerts!

*We only send one email per week