,Growth Initiatives
Realizing that Target was its strongest U.S. competitor in discount mass merchandising, Wal-Mart's management felt in 2005 that it needed to overhaul its merchandise mix, stores, and
image to go after higher-margin, discretionary sales. Greater emphasis was to be placed On
more fashionable merchandise and more attractive advertisements. It wanted to entice its
style-conscious customers who went to Wal-Mart to buy food and the basics, but avoided the
fashion and home furnishings departments. Management worked to reduce clutter on the Wal-Mart sales floor.