Target faces stiff competition due to the slow industry growth and several competitors. Many competitors are very established and hold huge parts of market share, making it hard for Target to compete against such stores like Wal-Mart. Discount retailers like Target must compete not only with each other but with wholesale, and category specific retailers, drug stores, supermarkets and online retailers. Products within these stores are homogenous forcing retailers to compete on price. Target and its competitors have high fixed costs such as leasing requirements, employee wages, and health benefits. Small margins on individual products, causes firms to spread costs across a large volume of output. This enhances competition, as companies must maintain
