While Prudent, Target's Investments in Technology and Efficiency Fail to Unlock a Competitive Edge

Target has adapted to retail digitization, but we posit it faces a highly competitive environment with negligible customer switching costs, exacting pressure to elevate service while holding prices low. Without the scale of Walmart and Amazon or the differentiated business models that characterize moat-endowed defensive retailers we cover, we expect no-moat Target will be vulnerable to the competitive onslaught.