As Moody’s Investors Service’s business reports have shown, Wal-Mart has been slowly but surely gaining ground in the grocery business compared to its rival as Target’s new strategy appears to be aimed towards a different market area.

So What Is Target’s New Strategy?

With both competitors having had a tough few years, with Target still recovering from its 2013 credit-card breach fall in reputation and facing the results of its departure from Canada, things seem to be finally looking up as the results of the two company’s big investments are starting to show.

Following a busy period of rebuilding, Wal-Mart’s strategy of inching its way into the online sector seems to be paying off as the company is now better prepared to take on internet giants such as Amazon.com Inc. Their Internet growth, coupled with the high expenditure in other departments is turning in positive results for Wal-Mart, as the company is showing early, but steady, signs of growth. Target, on the other hand, has yet to show signs of regaining its status.

The two company’s future was outlined when their most recent earning reports came in. While the Bentonville, Arkansas Wal-Mart not only beat its estimate but also increased their earnings, Minneapolis’s Target fell short in achieving its estimates.

The main difference between the two competitors and the thing that seems to be eating away at Target’s new strategy is Wal-Mart’s grocery sector. Whilst both chains sport a place in the food market, more than half of the nationwide revenue accounts to Walmart, who is almost twice as big in size compared to its nearest competition, Kroger Co. Although Target’s grocery sector comes to approximately 40% of its own revenue, it accounts for just about 15% when compared to Walmart.

These percentages are thought to be directly linked to the difference in market strategy. Wal-Mart maintains a Supercenter format that offers full-line grocery stores besides its merchandise stores, also stocked with full-line general products.

Target, who tries to compete with its SuperTarget-format stores, couldn’t quite reach the target as the range of products they offer differed from Walmart’s and their initiative, the Pfresh, couldn’t quite break into the market as consumer orientation shows their preference for packaged products over perishable ones. Also, their lack of stand-alone stores comes as a clear disadvantage when compared to Walmart’s Neighborhood Market.

Target’s new strategy, which is aimed towards home and children’s apparel may be its saving, as their products should gain the client’s interest and increase both sales and profitability. But food offerings should not be looked over, and analysts are afraid that without an increase in the area, Target will find it very difficult to gain its lost ground. What do you think of Target’s new strategy?

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Summit, a New Jersey-based city near New York that has been battling with its overcrowding parking lots problem has come up with an unexpected solution: let’s use Uber!

As the city is situated close to New York, quite a number of its population goes to work, by commute, to the Big Apple. With the increasing number of commuting residents, the city has to deal with the ever increasing problem caused by the parking spaces near the train station, which have become overcrowded and insufficient.

As the idea of building a new train station parking lot has been quite shot down due to the millions worth of expenditures, the city has come up with an unprecedented solution. It has decided to launch a beta program, set to take place between October 3^rd, 2016 and March 31, 2017 and set to a limited number of 100 residents that will use an Uber car instead of their usual means of transportation towards the train station.

The program would be beneficial to both the clients and Uber. The residents that already hold a prepaid permit would get free rides, while those without one would pay a $2 cost per ride, amounting to the usual $4 cost entailed by a daily parking tax. Uber would also receive any difference in the cost of the rides from the Summit City Administration.

Whilst ridesharing is a well-known and widespread means of transportation, the idea of riding in an Uber in order to free parking spots and deal with the overcrowded lots would be quite a new one. Since it appeared, Uber has been widely contested as officials in different cities and states treat the car-services differently. Some consider Uber to benefit from too lax rules, as is the case in some Texas and Florida-based cities and would like to impose new rules on the car-service company. Others, like Summit, see Uber as a new method of transportation and fully embrace the modern idea of a car ride at a button’s push away.

The 100 space cleared by the selected car owners and the up to $5 million saved by not building a new parking lot seem to be the best solution the Summit officials can offer its residents, with benefits for all the participating members and, perhaps, even a new opening towards innovative transportation means.

What do the readers think about Summit City’s idea, will it be a bust or will it bloom into a national solution for overcrowded parking lots?

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The British government gave the go-ahead for the Hinkley Point nuclear plant. The investment is worth 18 billion pounds and it will come with specific safety measures.

The Hinkley Point nuclear plant will be positioned in Somerset. It will receive funding from France and China.

In return, China would like to use the Hinkley Point design for other nuclear projects.

The UK government wants to create a new legal framework, for those who want to invest in Britain’s key infrastructure.

At one point, the project was called to a halt by Prime Minister May. The stopping measure came after eight years of tough negotiations. Mrs. May wanted a re-evaluation, taking into consideration long-term costs and the big role that China would play in essential infrastructure. However, the Chinese side was taken by surprise and made reference to the impact on the relations between the two economies.

Those who criticize the deal warn against increasing functioning costs and deeply rooted implications of foreign governments building nuclear power plants on the UK territory. France’s EDF supplies the funds for 66 percent of the project, while China is investing the remaining 6 billion pounds.

The Chinese side wants to have a stake in both Hinkley and Sizewell in Suffolk. They want the UK government to allow them to build their own project at Bradwell, in Essex. This led to national security concerns.

The government released a statement reassuring citizens that once Hinkley is ready, the UK government will reserve a share in all future nuclear projects. This will ensure the UK’s interest is well represented and significant moves cannot be done without the Government’s agreement.

The statement also noted that the government will reform its approach to essential infrastructure so that foreign ownership is surveilled for the sake of national security.

Greg Clark, the Energy Secretary pointed out that the UK will introduce measures to keep security high and ensure that Hinkley is UK-controlled and cannot switch owners.

All in all, the UK government has decided to go ahead with the first new nuclear station of this generation.

The investment decision was approved by the French in July and China agrees in principle.

What’s your opinion on this article? Please leave us a comment below. Thanks!

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The UK economy is back on track. The service sector is largely responsible for this robust economic comeback.

Following a sharp decline in July, because of the Brexit vote shock, the services sector made a comeback in August, with its biggest monthly increase in 20 years.

The Purchasing Managers’ Index (PMI, in short) of the service sector climbed at 52.9 in August, from July’s 47.4.

Chris Williamson, from HIS Market, believes that recession is avoided thanks to this big rise in PMI services. Moreover, the construction and manufacturing sector are behind the economic comeback.

Williamson points out that there are clues which point to the fact that Brexit effects are fading.

The pound climbed to a one-month high. The performance in manufacturing and construction industries have helped the currency revive.

The data suggests that fears of the economy contracting after the vote to Brexit were “a little overdone”, according to Peter Dixon – a London economist from Commerzbank.

Prime Minister Theresa May expressed her opinion today that the times ahead will not be “plain sailing”, however, she is optimistic about the opportunities which may come.

The Bank of England cut the rate of interest to 0.25 percent, part of a stimulus pack to help the UK prospects for investment.

Treasury chief Phillip Hammond will reveal his plan for fresh taxes and expenses before the end of this year. A majority of economists believe he will come up with further measures to induce growth.

Previously, there had been uncertainty over the changing of the government and the stimulus from the central bank.

Some analysts still think the British economy may struggle as the government tries to get the best possible Brexit deal.

Prime minister Theresa May aims to halt immigration from the EU, but at the same time to keep strong economic ties. Other European nations warn that the single market cannot limit the free movement of citizens.

The G20 summit showed just how complicated that wish is. While Mrs. May has spoken about the UK becoming a leading trade nation, Japan’s Shinzo Abe has voiced concerns that the UK is closing itself from the outside world. Barack Obama also warned that achieving a free trade deal with the UK is not a priority.

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Japan’s Prime Minister, Shinzo Abe has committed to investing $30 billion in Africa. The money will go into infrastructure, education and healthcare across the continent.

For the agriculture sector to work and provide sustainable food for Africa, massive efforts are needed. Japan is already a key partner in this region of the world, contributing to developing the agriculture sector on the continent.

Sub-Saharan Africa represents a challenge in terms of food, with the largest prevalence of malnourishment in the world today. Approximately one in four people suffer from malnourishment in sub-Saharan Africa.

By 2050, the population of this region will probably exceed two billion. So efforts in eradicating poverty will have to increase. Japan has long been showing interest in Africa’s underground resources, especially after the oil and natural gas imports surged, following the 2011 Fukushima nuclear disaster.

Abe visited Nairobi, the capital of Kenya, where he took part in the sixth Tokyo International Conference on African Development (TICAD). He stated that the investment will take place in three stages, over the course of three years.

The pack will include 10 billion dollars spent on infrastructure projects, in partnership with the African Development Bank. The minister also said he expected that the total amount of the deal to be 30 billion dollars. Abe went on to say that he believes in Africa’s future and that he wants Japan and Africa to grow together.

The speech was held in front of over thirty African heads of state.

Japan invested 1.24 billion dollars in Africa, in 2015. The money was spent on airports, roads, and power plants. To compare, rivaling China made one investment, totaling 2 billion dollars, in Equatorial Guinea- a country rich in oil.

A fraction of Japan’s new investments will go into increasing the electricity capacity by over two thousand megawatts on the African continent. Another portion of the money will go into training mathematics and science teachers across Africa, and 20,000 health experts which will learn to handle infectious diseases.

The president of Chad, who attended the summit, asked Tokyo to help efforts in countering terrorism.

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Mc Donald’s has decided to introduce healthier food. The popular fast food chain is going ahead with plans to simplify the menu and announced that it would bin artificial preservatives from chicken nuggets, egg products, and breakfast sausages. The fast food will also replace high fructose corn syrup from buns with sugar.

All these changes will take place earlier than scheduled, by the end of this month. The changes should satisfy health-focused customers who want fresher, whole food.

For happy meals, which are preferred by children, taking out artificial flavors and colors is a big step forward. There has been increasing demand for the all-day breakfast which was launched last autumn.

For those ordering lunch or dinner, Mc Donald’s has burger buns with sucrose installed.

The biggest surprise comes from chicken products. From now on, the poultry products will be completely free of antibiotics which are prescribed for human health. Farmers will still be allowed to use ionophores, antibiotics which are not currently prescribed to people, but they do their job at keeping chicken healthy.

Mike Andres, president of US operations, wants his restaurant to cater more to health-minded customers.  He also pointed out that the company made important changes over the last 18 months, such as shifting from margarine to butter on breakfast sandwiches and getting milk from cows which have not taken growth hormones.

The company also plans to move to using cage-free eggs by 2025. Over 100 companies followed Mc Donald’s footsteps, by making health-conscious food choices.

The fast food is analyzing every aspect of the menu. And, while beef may be harder to switch from junk-food to relatively whole food, Mc Donald’s says it will try harder to provide us with better quality food.

There are hopes that Mc Donald’s will come up with healthier food worldwide, and make similar pledges for beef and pork.

Other restaurants, like Subway, Wendy’s and Taco Bell have pledged to use fewer or no antibiotics.

More and more companies have acknowledged the link between high-fructose corn syrup and diabetes or obesity. And the once popular sweetener has fallen out of favor with scientists and consumers alike.

What’s your take on this issue? Do you hate or love Mc Donald’s? Leave a comment below. Thank you.

Image Source – Geograph.co.uk