How to fight Amazon and win like Target Inc.

Small businesses can use their strengths against e-commerce players

Target is thriving, while retailers such as Macy’s, Gap and Kohl’s are incurring losses. Target chose to focus on fundamentals of retail, rather than in-vogue omni channel strategy.

Target focussed on three things. One, it remodelled its stores and opened smaller stores. Two, it reimagined digital with its existing stores in the centre. It didn’t copy Amazon’s fulfilment centre to ship products. Three, Targets also focussed on in house billion dollar brands.

As per FT: In the third quarter, Target’s revenue rose 4.7 per cent from a year ago to $18.7bn, topping Wall Street forecasts for $18.5bn. Earnings increased 18.5 per cent year-on-year to $1.39 a share, topping the median analyst forecast. Its operating margin of 5.4 per cent in the third quarter was up from 4.6 per cent a year ago.

Indian retailers such as Shoppers Stop and Urban Ladder are focussing again on stores. Independent retail brands should not fear Amazon and Flipkart. Target shows how to thrive by focussing on strengths and merchandise.