Introduction
Wal-Mart and Target are the two largest retail chains in the United States categorized of SIC code 5331 which is the retail-variety group assigned by the SEC. Both American based corporations, they are the two most recognized and successful supercenters of their kind rendering several other smaller companies obsolete. Wal-Mart is the larger of the two and has gained enough resources to quickly spring into international business endeavors and expansion of different segments while Target remains a primarily domestic corporation with just one segment. While both stores serve generally the same purpose, the stores attract different markets and both feel intense competition from one another. While Wal-Mart is much larger in scale, Target is very competitive from a financial standpoint. The following will attempt to analyze both corporations’ finances and give some determinant to which company would be more prosperous for a typical investor based on integral financial information found in the companies’ annual reports and some from other reputable resources.
Wal-Mart Overview: Background, Goals and Marketing Strategy
Wal-Mart originated in 1969 under the leadership of Sam Walton. Wal-Mart is the largest superstore chain in the United States. Their products vary from groceries and perishable items to car care in some stores. However Wal-Mart is not just made up of the traditional supercenters that over 100 million people frequent weekly. Wal-Mart is comprised of three separate segments. A segment of a company is defined by a subsidiary or part of a corporation that makes up more than ten percent of its assets or revenues. “Wal-Mart Stores” is a hea ...