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Two of the global retail giants on other ends of the spectrum- Amazon and Target- have diversified their strategies in order to attract newer audiences. Target which specializes in large retail outlets has opened up smaller ones like the one in Manhattan. Amazon meanwhile plans to further expand its physical grocery stores to curbside pickups as well. The former is being done to attract younger customers, while the latter strategy is being summoned as Amazon ahs realized that a mix of online and physical formats works best. Some major learnings have emerged for the retail sector. First of all greater presence for Target will mean more footfalls and revenues, a concept that did not work well with Wal-Mart but with due experience, Target is better positioned to guard its territory against disruptors like Amazon. Target also understands the millennial generation well and its image as an inexpensive option bodes well with them. Target has takes risks but it has the added advantage of extracting valuable business intelligence from the Wal-Mart campaign so that it does not repeat the same or similar mistakes. Target is also an expert at merchandizing and customizing the product categories as per market requirements. They segment for geographies rather than believing in a one-size-fits-all strategy. Amazon and Target are both going all out for both retailing formats as research has revealed that especially the Generation Z-ers and Millennials both use physical as well as online formats simultaneously.

Source:http://knowledge.wharton.upenn.edu/article/how-target-and-amazon-are-changing-the-rules-of-retail/

 

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