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Posted on 08/05/2014 5:58:49 PM PDT by Red in Blue PA
Analysts are skeptical that the costs of a massive data breach are the main reason for a profit warning from retailer Target on Tuesday.
The company said it expects to record $148 million of gross losses from the breach, in which hackers gained access to thousands of customer credit- and debit-cards. The losses will be partially offset by a $38 million insurance payment.
“That’s like saying the reason your household is in financial stress is because you got a parking ticket last year,” said Steve Beck, founder of cg42, a management consulting firm that specializes in brand vulnerability.
Target TGT +0.18% chalked up total sales of $72 billion in 2013, which means the cost of the data breach is about 0.2% of sales — and 25% of that is covered by insurance.
Experts said the bigger fallout from the breach is the way it has distracted management from doing what the company does best — selling goods.
(Excerpt) Read more at blogs.marketwatch.com ...
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“The irony is that most gays who are into the latest fashion trends look down on stores like target. Only an idiot management would hitch their wagon to that star.”
That’s right, and unlike us breeders, most deviants don;t have children. That is a whole customer base that can’t be ignored; a week after school closed for summer vacation, retailers were trying to sell back-to-school supplies to my wife and me (and countless other parents). Perverts have a lot less demand for such items...
I still shopped at target after the data breach. I checked my credit card activity online for several months after the breach, and nothing fraudulent appeared.
However, after they discouraged carrying guns in their stores, those stores immediately felt less safe and stable to me, even more so than after the data breach.
As a result, I haven’t shopped target in months.
And as long as they push socially liberal issues, I’ll never return.
I was the same way.....continued shopping there after the data breach but their gun position die it for me. No more Target. Shoppers at one store down south were assaulted in the parking lot a week after that went into effect. No thanks.
“And as long as they push socially liberal issues, I’ll never return.”
I think you nailed their financial losses right there.
I guess all their highly paid upper management types thought that a generic general merchandise retail store could obnoxiously alienate half their entire customer base, and still flourish!
What are they teaching at those expensive business schools?/sarcasm//
It’s not working....I won’t shop there.
let the sodomites and gun-grabbers keep target afloat.
That's technically not true.
The thing about Target, is that they've successfully created an upscale-discount store hybrid. And they have a lot of support from the Hollywood crowd and folks on upper middle-class incomes.
This is by no means defending Target, I don't shop there. But they have carved out a niche.
“Bad economy and alienating more prospective customers.”
Just as sports teams shunned families/affordable tickets for corporate boxes and wealthy fans, I guess some stores are just appealing to those consumers who normally aren’t burdened by the costs of providing for a family. Doesn’t work if that much larger “normal” population walks away because of it, but I think many of these large retailers see the writing on the wall (their business models are also being “fundamentally transformed”), and they’re just trying delaying actions while management seeks an exit. A short-sighted strategy, targeting customers that don’t produce another generation of potential customers, but they’ll take from the perverts what they can before they inevitably scale down or go completely out of business.
I wont set foot in one of their stores...
How much does the “Hollywood crowd” spend at Target? You have any numbers to back that up?
That's not the issue. Target uses celebrities to promote them and in turn that influences the suburban yuppies and gays with high disposable incomes to shop there. Celebrities don't actually need to shop at Target.
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