Target obviously didn’t get the memo: the marginal consumer is tapped out.
Target severely missed earnings expectations on Wednesday, spooking investors who are now sending the retailer’s stock price toward its worst daily drop in over two years and its third-worst day in the stock market ever.
The company’s share price tanked 21% on Wednesday morning after it reported a sales decline, lower profit, and a stockpile of unsold inventory.
I expect cut-rate retailers like Ross (ROST) are going to benefit from consumer over-extension.
I bought an (NBA) team logo hoodie there three weeks ago for $23, that has a list price of $79. Not only is it attractively priced, it keeps me warm around the house while I deal with the 29% increase in energy prices the Biden administration inflicted on us. Inflation Reduction Act aka Green Inflation Act aka Freeze Consumers to Death Act.
The DNC, and all their activists, and the media missed that memo too.
Target went all in on rainbow, gay, trans sections for kids. I wonder how much loss in sales is due to that. Especially since the lower income folks are less likely to want that than the over educated ponces who don’t shop at Target anyway.
Look what they did to the bathrooms…
fools
My wife has been a Target aficionado since we met … yeah, she always shopped there alone *smirk*. But now she won’t darken the door of their big red balls since they sold tuck-under panties for preteen boys.
I went to it a couple of times when Target was in Hamilton. Didn’t really see the point. It was pretty much the same as walmart but a little more expensive. No wonder they failed to stay in Canada.
Canadians who knew Target from say, their Florida vacations were disappointed to find out that they weren’t getting the Target USA (circa 2010 or so) retail experience but in fact were walking into what was essentially a re-branded Zellers.
And now The Bay – the clowns who could not make money at their store at Yonge and Bloor, arguably Canada’s bs8iness intersection – are trying to revive Zellers – akin to bringing back the Ford Pinto
Target USA DID recently go all woke but I don’t see this mentioned in any of the typical mainstream business press as a reason for their recent trouble. Conspicuous in its absence! I guess as one Killer Marmot – channelling his inner Kirk Lazarus – noted just yesterday about Jaguar aka Faguar, “never go Full Bud Light”
https://www.cnbc.com/2024/11/21/target-big-earnings-miss-consumer-demand-decline.html
I think another factor is that Target didn’t really anticipate that Canadian Tire did a lot more than sell tires, and much of what Target had to offer was already available at CT at similar prices. As the new entrant, Target needed to set their prices to draw customers away from CT and WalMart. Perhaps because they spent too much on renovating the retail spaces they acquired, they had to set their prices a little higher, and the customers didn’t come. It was actually a little disappointing to watch in Maple Ridge (BC) because Target did a very nice job of renovating the location that used to be Hudson Bay, and then Zellers. After Target shut down Walmart took it over and has been there ever since. One of very few WalMarts that have two floors.
But, but, 23 Nobel economists say the economy is doing great.
It is if you are a highly paid academic.
Or an even more highly paid TV talking head.
Target lasted all of about ~6-8 Weeks in Calgary…then poof – gone.
Only time I actually went into a Target was while working in Wausau, Wis, 2018 – Bought a Lunch Bag & of course the teller is some guy with Teats.
Pretty much all my shopping these days is through Amazon. Every retailer on the planet could disappear and I wouldn’t care.