Costco Wholesale Corporation (COST), Wal-Mart Stores, Inc. (WMT): Hold On to These Stocks for Assured Growth

Target had a rough start to 2013 with its sales and earnings both being lower than expected in the recent quarter. The next few quarters are also expected to be flat. However, their retailer’s loyalty-card program is delivering good results and should be good for future sales to a great extent.

Target is a recognized brand and sells high-end products at bargain prices along with a wide variety of unique products to offer. Alike Costco, Target’s REDcards will also be able to bring buyers to them by offering a 5% discount on purchases made from its stores or website. Further, to attract consumers and conclude their product search with potential purchases, Target presented its customers with exclusive products and a distinctive boutique experience through “The Shops,” its online site.

Target’s entry into grocery should boost its sales and increase footfall, which might eventually end up in customers purchasing goods exclusively from it without bothering about trying other places. Target’s sales have already risen 10% since it commenced selling groceries, which points out towards the potential going forward clearly.

Final words

All retailers seem to have something more to offer than the others to attract customers and retain them. Currently, the success of Costco’s model comes from its upfront fee collection, which almost confirms its profits a year in advance. Target has always been innovative and that has been the reason behind its success. Wal-Mart’s price sensitive customer base and gigantically diversified global base provides it with a great cushion of revenue.

In my opinion, all of these retailers are good long-term investments in the current scenario.

The article Hold On to These Stocks for Assured Growth originally appeared on Fool.com and is written by tarun bachhawat.

tarun bachhawat has no position in any stocks mentioned. The Motley Fool recommends Costco Wholesale (NASDAQ:COST). The Motley Fool owns shares of Costco Wholesale. tarun is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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