Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Spekulatius who wrote (41846)	3/18/2011 10:47:58 AM
From: E_K_S	Read Replies (1) \| Respond to of 78507

Hi Spekulatius: TGT recently beat Wall Mart on a price survey done in January 2011. It looks like it is as a result of increasing their grocery lines and bringing in a more efficient company owned Supply Chain operation. It's pretty incredible they are able to move their business operations so fast (w/i last 12 months) being such a large company (Market Cap $35 Billion). Low, low prices: Target beats Wal-Mart money.cnn.com From the article:"...Two recent price comparisons of grocery and household goods revealed that Target's prices are lower than at No. 1 retailer Wal-Mart. <clip> "Target stepped up its game during the recession," he said. "The company caught up with Wal-Mart on making its supply chain more efficient so it could bring down prices on items people frequently buy." Groceries are big traffic generators, and Wal-Mart still dominates Target there. About half the items that Wal-Mart sells are groceries. Johnson estimates that 15% to 20% of Target's merchandise are groceries. Koenst declined to confirm those numbers but said 16% of Target's sales in 2009 were food and pet supply purchases...." --------------------------------------------------- I remember the REIT proposal and think management made the right long term move to hold onto their company owned real estate. It is very interesting that Target is improving their Supply Chain at SVU's expense. TGT also plans to move into Canada as they recently entered into some long term real estate leases in Canada. Target To Buy Leases Of Canada’s Zellers For $1.9B January 13, 2011 11:18 AM minnesota.cbslocal.com From the article:"...Target is expanding north, agreeing to acquire most leases of Canadian retailer Zellers for $1.85 billion and planning to open its first Canadian stores in 2013. It’s the first move outside U.S. soil for the No. 2 U.S. discount chain...." I think TGT may be one to watch. I will add it to my watch list but still not too excited about retailers in general. EKS Disclosure: I lightened up on 25% of my SVU last week moving the proceeds into oil stocks.