Wal-Mart takes aim at Target's "Cheap Chic" market

Wal-Mart takes aim at Target June 21st 2005
Reuters reported last week that Wal-Mart intends to try to capture a larger market share of the "Cheap Chic" crowd that has made Target so popular among upper-middle class consumers.

Apparently the retail giant isn't content with the ultra-low end market anymore. They've realized that there is money to be made in this demographic, and that right now people aren't coming to their stores for it.

When asked about why consumers are going to other sources for this type of discretionary spending, Chief Executive Lee Scott said, "When it comes to buying domestics or apparel, that customer isn't shopping with us... They are going somewhere else where they believe the offering is more suited to their taste."

Scott is more right than he knows.

There is more to building a brand than putting together a good marketing campaign, or a catchy slogan. In this age of information, it is becoming increasingly difficult for corporations to sweep their misdeeds under the rug. And part of building a brand, is improving how the public perceives you, through substantive actions, not meaningless gimmicks.

I made a conscious decision to stop spending my money with companies who I have no respect for, and Wal-Mart is at the top of that list. Too much bad karma buying things from a retailer that's entire corporate philosophy revolves around moving into an area, wrecking their economy, and importing everything from China.

What the executives at Wal-Mart don't grasp is that the "Chic" middle class Americans out there, make enough money to be educated, and understand the ramifications of how they spend their money. No amount of marketing can change that. And thats why this effort will fall squarely on deaf ears.