CHICAGO, April 12, 2012 /PRNewswire/ -- Today, Zacks Equity Research discusses the Retail Industry, including Target Corporation (NYSE: TGT), Cabela's Inc. (NYSE: CAB) and Family Dollar Stores Inc. (NYSE: FDO).
Starting from enhancing the supply-chain management to going global, from improving their productivity through operating efficiencies to using technology, retailers are trying to cover all bases, strategically. Retailers are focusing on cost containment, inventory management and merchandise initiatives to improve margins.
Buyer-Centric Approach: Retailers are largely concentrating on buyers' needs, which in-turn will likely positively augment sales in the long run. Moreover, considering the current macro-economic environment, it is a smart move as it better positions companies to attract consumers.
Multi-Channel Strategy: The technological advancement in marketing, such as e-commerce and m-commerce, creates a win-win situation for both the retailers and shoppers, as it enables the companies to generate additional sales and broadens the company's existing customer base throughout the world.
Moreover, this strategy also enhances the visibility and reputation of the retailer as a global firm. Shoppers get the benefit of purchasing researched products at better price-points, as they can compare prices being offered by various companies.
New Markets: International turf and emerging markets provide ample opportunities for retailers to widen their growth prospects and help the companies to hedge against economic cycles.
Store Formats: In order to enhance the shopping experience of customers, retailers felt the need to adapt to the demands of time and consider consumer-oriented strategies. Target Corporation (NYSE: TGT), in order to tap the urban markets where real estate remains a constraint, plans to introduce smaller-format stores called City Target.
In a similar move, Cabela's Inc. (NYSE: CAB), one of the leading specialty retailers of hunting, fishing, camping, and related outdoor merchandise, unveiled its new 'Outpost' store format. The relatively smaller size store will provide shoppers with Cabela's retail experience and will facilitate the company to capitalize on the under-penetrated markets.
Business on the Rise
Dollar Discount Stores: The dollar discount stores have performed well when the recovery in the economy seemed tough, generating top and bottom line growth. Family Dollar Stores Inc. (NYSE: FDO), the operator of self-service retail discount store chains, remains successful in luring consumers to its stores.
We believe that the company's effective pricing and inventory management, private label offering, expanded operating hours and merchandise initiatives should drive sales. The company's point-of-sale technology and store realignment initiatives better position it to drive traffic, meet customer-oriented demand and improve in-store shopping experience. Family Dollar now expects fiscal 2012 net sales to jump by 9% to 10%.
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