Is Target a subsidiary of Walmart? Let’s understand

Is Target a subsidiary of Walmart? Let’s understand
Retail
09:44, 23 April 2022
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Target is in the list of the largest supercenters in the US, which allowed the company to enter the Standard and Poor's 500. The retail chain has won the customers’ love thanks to low prices and a wide grocery assortment. There are over 1,920 Target stores across the US.

Because of the operating principle and the company's pricing policy, big-box purchases, people sometimes think that Target belongs to Walmart.

Target and Walmart: Do they have a common owner?

No, this is not the case. Target belongs to the self-titled label Target Corporation. Prior to the early 2000s, its name was Dayton-Hudson Corporation, formed by the association of two American companies. The conglomerate controls:

  • hypermarkets;
  • discounters;
  • small shops.

Who owns Target? A brief history of the trading giant

Target store appeared in the spring of 1962 through the work of businessperson John Francis Geisse. In the initial period, the store suffered losses, and experts believed the retail chain would destroy the developing network of consumers’ co-operatives who made wholesale purchases for supermarkets. But starting in 1965, the company got crazy profits, which allowed it to extend the geography of all branches across the US.

But the brand’s origins are rooted in the early twentieth century, when the owner of the Goodfellow Dry Goods George Dayton developed a network of grocery stores (1902). His brand has even changed its name several times.

The earliest Target operated in Roseville, as there were many opportunities for economic growth of similar enterprises in Minnesota. After a while, the supermarket chain enhanced actively. Then the company opened stores in Colorado.

Target Corporation appeared in the 2000 to conduct more business extensions, both inside and outside the US.

What brands does Walmart own?

People wonder who owns Target and are often surprised when they find out it's not Walmart. But what brands belong to the latest label? The conglomerate has an impact not only throughout but also beyond the US. Among the Walmart subsidiaries, we can see:

  • Wertkauf and Interspar hypermarkets (Germany);
  • Bompreco (Brazil);
  • Seiyu Group (Japan);
  • Massmart (South Africa);
  • Bharti cash and carry stores (India);
  • CARHCO (Central America);
  • Lider (Chile);
  • Walmex (Mexico);
  • Walmart (Canada);
  • Yihaodian (China);
  • Sam’s Club.

Depending on the number of controlling stakes, the American brand periodically became the owner of various brands, and subsequently resold part of the shares, due to which it partially or completely lost control over the conduct of business.

For example, in the winter of 2021 Walmart sold the British retail group Asda Stores Ltd. to Mohsin and Zuber Issa (EC Group) in the amount of 50% of the controlling stake, however, remained a shareholder of the company and influences the decisions of the management board.

Why did Target become popular?

Target primarily attracts buyers with low prices and the possibility of big-box purchases. The brand also offers several store formats.

  • SuperTarget (includes pharmacies, large retail halls, catering establishments).
  • Small-format stores (standard package sizes, suitable for daily purchases).
  • TargetExpress retail outlets (a type of corner stores, usually near public transport stops).

In addition, in most large hypermarkets of the retail chain, you can visit CVS Health pharmacies. Most supermarkets (over 50%) are located less than half an hour away from residential areas, which is very convenient. This arrangement is typical for all US states.

In the stores of this retail chain, you can buy a variety of goods, including food and household items. There is even a phenomenon known among buyers called «Target effect», which forces them to buy something completely different from what is on the shopping list, and thus customers spend significant sums of money on sometimes unnecessary items.

Summary

Walmart never bought Target but acquired premises which are belonged to the label for the development. Target retail chain pertains to the Target Corporation. An initial brand's retail place started to work in the middle of the 20th century. It constituted a supermarket with low prices. A discounter eventually gained popularity among buyers, as they liked the new trading concept. And the business got benefits from such a strategy, reducing the expenses for the warehouses maintaining.

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