Target buyers always abandon its stores, and new data are exactly how
Sales were down for the second consecutive quarter, but managers remain positive on the results.
Target is one of those retailers that some of us like to go for a come get me . The lively lights and the wide aisles invite you to "please yourself", even during the holidays when we also buy for everyone on our list. But now, new data show that some customers really turn away from the attractive atmosphere of the retailer before the holiday shopping season. Read the rest to find out why buyers abandon the target.
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Sales and income was down.
Earlier this week, Target published his third trimester Gains report , which revealed that comparable sales (sales with comparable stores) fell 4.9% compared to the same period in 2022. AE0FCC31AE342FD3A1346EBB1F342FCB
The total turnover of the retailer of $ 25.4 billion also decreased, down 4.2% compared to the same era last year. According to Forbes , it is the second consecutive quarter that it experienced a drop in sales from one year to the next, and the results represent Worse sales of the third trimester Since 2021.
Digital sales also took a hit, down 6% compared to the same period in 2022.
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People always focus on necessities, not discretionary elements.
According to CNBC, like so many other retailers, Target is always faced with difficulties with customers who spend less Discretionary articles . (According to the press release, Target in fact reported a 19% decrease in this category in the last quarter.) Instead, Americans are looking for good deals and focus more on the necessities, have declared the leaders.
During a November 15 profit call , CEO of Target Brian Cornell also noted that when customers buy new articles, they now wait for them to really need it. Instead of buying a new pair of jeans before fall, for example, buyers are waiting for it to be cooler, he explained.
"This is a clear indication of the pressures they face when they work to stretch their budgets until the next pay check," said Cornell during the call.
However, the financial director of the retailer Michael Fiddelke Adding that the objective is "focused on the laser on the fact that traffic and sales come back in a positive territory" - and they hope to shop and celebrate "seasonal moments".
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Target actually beat the predictions of analysts in the last quarter.
Even if sales continue to slip, Target has always beaten Wall Street estimates for profits and income. According to Wall Street's journal , business gains increased by 36% $ 971 million in the third quarter, which was significantly higher than analysts of $ 685 million. According to managers, this has been accomplished thanks to better inventory management and expenses.
The 4.9% drop in comparable store sales was also better than the 5.3% drop -down analysts. While almost all categories have been faced with a drop, in the press release, Target noted that these crises "were partially offset by continuous growth in frequency categories, especially beauty".
Target's shares courses also jumped on Wednesday, which was a positive note, because the title took a safe hit in 2023, Forbes reported.
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Target is cautious in the holidays.
Given the figures for the last quarter and the fact that buyers actively tighten their belts, Target takes a prudent perspective for the holiday season of 2023. The company provides that comparable sales will drop once again "around a drop in Mid-chiffre ", similar in the third trimester.
According to Wsj , Target's results in the coming months depend on the success of its success " value marketing "Was, namely his advertisement of" Joy Affected Joy "with gifts of less than $ 25. However, this could be difficult with the competition from housing retailers like T.J. Maxx and Homegoods, who have seen increases in sales stores of the same store during the third quarter, Wsj reported.
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