Wal-Mart and Target Enjoyed the Holidays, According to Media Coverage

A new study by global media analysis firm CARMA imMEDIAte.com, LLC has found that American media showered widespread attention on the impact of the holiday shopping season on the country’s retail sector. Throughout November, December and early January, the media reported heavily on one question: after a year in which the economy screeched to a halt, hundreds of thousands of workers were laid-off, and the country endured the first attack on U.S. soil since Pearl Harbor, would the holiday shopping season be lucrative for America’s nationwide retail chains?

While sales results were mixed across the retail sector, several chains benefited from being placed in the media spotlight, with two discounters emerging as the shining stars. CARMA’s research found that the media anointed Wal-Mart and Target as the big winners of the holiday shopping season. Numerous reports indicated that, unlike recent holiday seasons, consumers sought out stores that presented the best values, spurring shoppers to visit Wal-Mart and Target rather than the local mall. Wal-Mart’s standing as the nation’s largest retailer was only enhanced during the holidays, as the media frequently pointed out its strong sales and its ability to offer the lowest prices. With products from renowned designers, the media identified Target as being “cheap chic” and the place to go for affordable, but stylish clothing and home wares. The two chains also garnered favorable media attention for their heavily trafficked web sites, walmart.com and target.com.

CARMA imMEDIAte.com, LLC, a Washington, DC-based company and an affiliate of CARMA International, Inc., analyzes coverage of more than 700 of the world’s largest companies in the 90 most influential print media outlets across 25 countries in North America, Latin America, Europe and Asia/Pacific. Results are updated daily on its subscription-based website, www.carmaimmediate.com.

The CARMA study showed that the increased media attention on discounters was not beneficial for the nation’s second largest retailer. CARMA’s research revealed that Kmart received the most unfavorable coverage among the nation’s major retailers. Kmart suffered from frequent reporting on the chain’s sluggish sales and increased losses. Furthermore, in the weeks following Christmas, the media raised concerns about its economic viability because of Kmart’s poor holiday season showing. Kmart’s difficulties were reported to be rooted in its inability to develop its niche, as the media suggested that it could not compete with Wal-Mart’s low prices or Target’s fashionable products.

Among department stores, J.C. Penney was the media favorite during the holidays. According to the study, J.C. Penney was the only major department store to generate favorable national coverage. After struggling during 2000 and early 2001, J.C. Penney strengthened its sales during the back-to-school months, and the Texas-based firm built on this improvement during the holiday season. The media highlighted how Penney’s edesigned store layouts and more stylish clothing offerings enabled the store to reach its sales goals during the holiday shopping months and achieve same-store sales growth.

CARMA’s research also found that sales woes tarnished media coverage of the parent company of shopping mall stalwarts The Gap, Old Navy and Banana Republic. Gap, Inc. joined Kmart on the list of retailers that CARMA identified as receiving the most unfavorable coverage during the holiday season.