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NEW YORK (March 17, 2004) – Recognized as the nation's two largest discount retailers, Wal-Mart and Target have diversified inventories to new product lines in their ongoing competition to secure loyalty from their common customer base.
Although it does not specialize in bookselling, Target added the breakout popular novel "My Fractured Life" by second-generation entertainer Rikki Lee Travolta to its online inventory when the book skyrocketed in sales over the holiday season.
After adding the Travolta book to its product offerings, Target reported net sales increases nationwide of 9.9%.
"Sales for the total corporation were essentially in line with our expectations, driven by strong sales in the final two weeks of December," said Bob Ulrich, chairman and CEO of Target Corporation - the nation's second largest discount retailer.
As documented in Tri-State Today, "My Fractured Life" was identified as one of this holiday season's high demand gift purchases, comparable to the craze for Cabbage Patch Kids in 1983, Tickle-Me Elmo in 1996, and Michael Jordan signature shoes throughout the 1980s.
Known for identifying and promoting products of extraordinary cultural popularity including exclusives by teen icons Mary Kate and Ashley Olson and romance cover model Fabio, Wal-Mart followed Target's lead and added top selling "My Fractured Life" to its on-line inventory in February. Within days, Wal-Mart reported demand had exceeded stock.
"My Fractured Life" is offered by Wal-Mart to its customers at a value-added retail price of $11.18; almost $5.00 less than retail bookstores.
Compared at Barnes and Nobel's online store (bn.com) to "Mystic River" and "Cold Mountain," popularity of "My Fractured Life" is expected to continue to climb based upon the Oscar-success of the film translations of those two titles.
Sean Penn and Tim Robbins won Academy Awards for their acting performances in "Mystic River" about the manner in which the effects of abuse echo through time.
Renee Zellweger won the Best Supporting Actress Academy Award and Jude Law earned a Best Actor nomination for their work in "Cold Mountain" about a web of friendship and love between an army deserter, his wife, and a hermit-like mountain woman.
"My Fractured Life" details the web of friendship that bond adult survivors of abuse struggling for survival in an abyss of temptations.
The decision to offer the popular Travolta book is a sign that could indicate a change in fundamental stocking philosophy by Target.
"Target made its reputation in apparel" and completely differentiated itself from Wal-Mart, said Howard Davidowitz in an interview with Gannett News Service. He is the chairman of Howard Davidowitz Associates, a national retail consulting firm.
Choosing an entertainment and literature medium such as Travolta's "My Fractured Life" as a point of battle for customers shows signs of Target taking the fight to Wal-Mart outside of its traditional retail comfort zone.
However, in other areas of competition Target announced in January that it will carry Levi Strauss Signature, a new denim apparel line introduced at Wal-Mart stores six months ago.
Wal-Mart is five times larger than Target based on annual revenues. Wal-Mart also has extensive international operations whereas Target is just in the United States.
One of the primary differences between the two retailers is that Wal-Mart places its focus on establishing competitively low prices, though Target's policy is to match Wal-Mart prices in local markets on identical items.
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