SWOT Analysis – Grayson Wolff

Internal

Multi-channel sales – Target is able to meet the customer where they want to be. Whether it is in-store, online, or order online and pick up in store, Target offers it.
Strong brand awareness – According to Statista, 89% of people in the United States know the brand.
Range of store variants – Target does not follow a “one-size-fits-all” philosophy when it comes to building retail locations. Instead, they build targets based on available space and market needs. This could look like a large SuperTarget store where space is available or also a small format store where space is limited such as on a college campus or within a large city.
Owned brands – Target has over 45 owned brands that cater to the needs of different audiences. These help Target stay in the minds of various audiences while also giving them a cost and value advantage over more expensive name brands.
Pleasant shopping experience – Target is constantly investing in revamping and modernizing its stores. This leads to consumers correlating Target with a more pleasant shopping experience than its competitors.

No international locations – All Target stores are located within the United States, whereas competitors like Walmart have locations internationally.
Inherently competitive market – The retail market is considered oversaturated, and competition against other retail giants will remain fierce indefinitely.
Supply chain vulnerabilities – While Target has no retail stores outside of the United States, the company has many offices outside the US and sources many items from international partners. This leaves them vulnerable to geopolitical tensions, especially those with foreign nations that have arisen within the past two years.

Collaborations and partnerships – Smaller companies with a concentrated product focus (such as Curology’s skincare products) are keen on partnering with well-established retailers to grow their market share and raise brand awareness.
E-commerce growth – Online sales are expected to grow by 9.4% in 2024. Target can use its well-known brand and already robust digital platform to capture this growth.
Health and wellness focus – There is a growing trend towards health-conscious living. Target has always been a brand focused on lifestyle and could capitalize on this trend to create loyalty amongst wellness-focused consumers.
Innovation – Many consumers feel that the shopping experience has gotten worse in recent years. This presents an opportunity for the brand to reimagine what it means to shop in-store and win further customers based on that experience.

High-price perception compared to competitors.
Continued backlash from May 2023 about the brand offering gender-affirming clothing.
Economic uncertainty – Consumers cutting back on discretionary spending due to inflation and a tough economy was one of Target’s biggest issues in 2023. Any further economic uncertainty will prove challenging for the brand.
Changing consumer preferences –The wants and needs of customers are always changing. Target will have to carefully balance ongoing changes in consumer preferences while also maintaining brand consistency.
Oversaturation – With a grocery store seemingly on every corner, growing business via opening new locations will be tough.
Well-established online retailers – Target is most known for its brick-and-mortar stores. While e-commerce is an opportunity for the brand, fully online retailers that have been around for longer (like Amazon) will make it difficult to compete.