Target: tricks of the trade or cliché tactics? – Target (NYSE:TGT), Wal-Mart (NYSE:WMT)

It has been reported that Target (NYSE:TGT), one of America’s and Canada’s largest retailing company is extending its shopping hours. The brand owns over 2,000 stores in the U.S. out of which 1,800 will gear up considering the holiday season is arriving. They aim to reap more rewards through this consumer driven tactic by giving customers more time to shop.

The Wall Street Journal states that Target (NYSE:TGT) stores will remain open up until 11pm and sometimes midnight till Saturday and somewhere in between 10pm and 11pm on Sundays. This however, is not universal and some stores in other districts may have different timings. They may close earlier according to the market response in the area.

This change will be brought about starting the current month and it will extend up until the end of the holidays. An evaluation will take place afterwards of how the stores progressed by The Wall Street Journal.

Target (NYSE:TGT) insists that this idea will help pay the costs of staff even though these timings till 10pm or sometimes 11pm are not peak times. The forecast of shoppers however, by the company, reports that keeping the stores open till this time of night will be fruitful.

Target (NYSE:TGT) has not only started this scheme, but has also reduced the prices of its products in order to bring in new customers. Its tactics has cut its current years outlook. Target (NYSE:TGT) has seen lower sales and more promotions in Canada this year than ever. This is stressful as Canada is a major part of its earnings. If this scheme doesn’t see better results from the U.S. then the stores may experience an outburst of extra costs than earning. Target’s (NYSE:TGT) earnings will be reported on Wednesday.

Comparing Target (NYSE:TGT) to its competitor Wal-Mart (NYSE:WMT) which has twice as many stores, it not only caters to an exquisitely large customer base, but also keeps around 70 percent stores open and working 24/7. This gives Target (NYSE:TGT) a tough shot at achieving its goal of attracting more customers.

Wal-Mart (NYSE:WMT) offers a wide range of products that Target (NYSE:TGT) has not even considered as yet. It may be time for it to pull up its game and start thinking of serious course of action to increase its sales. More convenient local stores are open 24/7 nowadays. If Target (NYSE:TGT) is trying to bring in exclusivity by taking its peak time to a maximum of 12pm then anything can happen.

The fight for customers is driving the company into increasing its staffs working hours. That is one big cost right there. If analysts don’t look into this matter before it gets out of control then the company’s name and image may be at stake.

Target (NYSE:TGT) is so bent at wooing customer that may be it hasn’t done proper competitor research. May be its customer traffic will have no change at all. Or maybe its forecasted customers will turn up in a few hours that it has increased.

Target (NYSE:TGT) stock opened at a value of $58.05 whereas Wal-Mart (NYSE:WMT) opened at $74.15.