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Regardless of what the figures say, Target always seems to maintain a fairly dedicated audience. People travel these stores for fun or even to unsubscribe. But even if it is often difficult to withstand a impulsive purchase Or two, customers seem to show more restraint than usual. In recent months, the data show that sales are dragging, which means that targeted buyers formerly loyal abandon the large -area store - or at least spend less. Read the rest to discover what is going on behind the sales crisis.

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For 2023 as a whole, Target sales fell 1.7%, falling to $ 105.8 billion, compared to $ 107.6 billion in 2022, according to a March 5 Profits .

Annual income was also lowered for 2023, falling to $ 107.4 billion. It was a decrease of 1.6% compared to 2022 - and it is the first time that this figure has dropped in seven years, according to Wall Street's journal .

During the fourth quarter of 2023, in particular, comparable sales of Target decreased by 4.4%. This marks the third consecutive quarter that Comparable sales - which includes digital sales and does not take into account openings, closings and store renovations - has been abandoned, CNBC reported.

In addition, while shopping and websites traffic has improved for the second consecutive quarter, it was still down compared to the same period in 2022.

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According to Wsj , Target's difficulties are largely due to a decrease in discretionary expenses, customers spending less for articles such as home goods and electronics. The objective is particularly affected by this, because it is mainly based on sales of non -food articles - unlike its competitor Walmart, which is the largest grocer in the United States in fact, more than half of Target's goods are composed of non -essential , according to CNN. AE0FCC31AE342FD3A1346EBB1F342FCB

Although it has added more food to its range in recent years, Target prices are also higher than Walmart - out of an average of 8.6% higher, CNN reported, citing an analysis carried out by RBC Capital Market .

Customer criticism surrounding a range of LGBTQ Pride goods has also contributed to the decline in sales, just like Store flight . (However, it should be noted that in the fourth quarter, the narrowing costs - which represents those linked to an accidental and deliberate flight - was decreased in relation to the same period in 2022, according to the press release.)

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Although it appears that buyers have abandoned the objective, the leaders maintain a positive but cautious perspective for 2024.

CEO and president of Target Brian Cornell underlined that sales and traffic for the holiday season have exceeded the predictions of Wall Street - and although sales are not immediately up, it is promising for 2024.

For the current budgetary quarter, Target expects comparable sales to decrease between 3 and 5%. For the year as a whole, the company "expects a modest increase" of this percentage, ranging from the apartment to 2%.

Target has worked to attract more customers, launching a range of low -cost daily goods called Discreet last month. The company does not stop there either. As Cornell declared the results in the press release, the retailer will continue to "invest in the forces and differentiaries who have provided solid financial performance over time".

This includes a new membership program, Target Circle, which, according to Cornell, said that CNBC "will be a really important part of what stimulates growth for us too for next year".

In addition to that, Cornell said that Target plans to work to improve delivery the same day at the customers' home, allowing buyers to get what they need in just a few hours.