Posted on 02/28/2017 1:16:06 PM PST by aquila48
Lower food prices at Walmart (WMT) , sharp price reductions at grocery stores such as Kroger (KR) and Aldi, and the rapid shift to digital shopping have rocked Target (TGT) to its very core.
The discount retailer reported fourth-quarter adjusted earnings of $1.45 a share on Tuesday, badly missing Wall Street estimates of $1.51. Same-store sales declined 1.5%, also missing estimates for a 1.3% decline. For comparison, Walmart U.S. delivered a same-store sales gain of 1.8% during the fourth quarter, propelled by lower prices in food.
Target said it sees full-year earnings of $3.80 to $4.20 a share, markedly below analysts' forecasts of $5.34. Target Chief Financial Officer Cathy Smith told investors that February sales were "challenging and choppy."
"Efforts have not been enough to win in this challenging marketplace," Brian Cornell, chairman and CEO of Target, conceded to investors at a meeting on Tuesday. Cornell added the marketplace is placing "stress" on Target's financial model.
Target also warned that it was transitioning to a new "financial model," one headlined by lower product prices and investments in remodeling stores and improving customer service.
"Our current margin rate will not allow us to go fast enough [on improving results]," Cornell added. Target said it will invest $1 billion this year in operating margins.
Improving the look of Target stores is an especial focus.
...
Despite Target warning of a weak holiday season earlier in the year, the magnitude of the fourth-quarter earnings shortfall, lackluster guidance and comments from Cornell stunned Wall Street, which sent shares of Target down as much as 14% in early trading.
"I am surprised like everyone else," Deutsche Bank analyst Paul Trussell told TheStreet via email.
(Excerpt) Read more at thestreet.com ...
If you have an Aldi near you....check it out. Excellent prices.
The look of the store isn’t the problem.
My thoughts exactly
I have two Aldis near me. Do 95 percent of my grocery shopping there. Their quality has gone up as their prices have gone down.
Up here we go to MarketBasket!!! Great food prices.
Always a treat to shop there.
I live within walking distance of the Target in Bee Cave, Texas. The parking lot used to be full just about every day UNTIL Target said its restrooms were gender neutral. A lot of my neighbors vowed never to shop at Target again. Those who did stopped going to Target for any reason. The parking lot went to less than half full overnight.
Target’s Board of Directors should five the CEO and all of his direct reports and any executive associated with the corporation’s pedophile enablement initiative and hire people who realize the business of that corporation is to improve the bottom line to make gays and pedophiles fell good about their bottoms.
If Target does not take action to get out of the political arena and into the profit arena, it will go out of business. If it goes out of business it will be no big loss to anyone other than the decent employees who word at Target.
Their Milk went sour in 6 days. It put a crimp in my White Russian fix.
My wife goes there sometimes.
You don’t suppose their stance on trans folks in the bathroom of their choice had anything to do with it, do you?
...or the weird advertisements of children dressed very 'maturely' had nothing to do with it either.
I’m managing just fine to avoid Target stores everywhere and to not buy anything from their online site. I used to do both. This is on principle and I also know I wouldn’t choose to go to their bathroom or have any of my family go there. Does Target now have some kind of politically correct signage at the bathroom door, do they have a welcome wagon there? It’s a tough time to be raising kids or to be a kid.
My problem with Aldi is the ones near here all concentrate on packaged foods that look like the brand names, but are knockoffs.
The large Walmart near here is so crime-ridden no one will go near it, (Orlando PD sergeant shot & killed in parking lot in broad daylight last month, any Caucasian is routinely harassed or aggressively panhandled by the Amish in parking lot, 24/7) but their new food-only store 2 miles away is fine.
That’s what I was thinking, how did that bathroom thing work out for you. I don’t think there is a mother in the world that wants to be in a Target when her daughter says “Mommy I have to go to the bathroom”
Except when it comes to bathrooms. Then the customer is on her own.
Retailers like Target operate on very thin gross profit margins. If the sales volume drops even a little bit and they fall below the break even point they are in big trouble. In other words, the boycott is kicking them in the ass.
If you use real cows milk, try Fairlife brand. It is ultra purified cows milk and it tastes better and lasts longer.
Surely Target’s sought-after corporate image as the enemy of truth, decency and the values of its own customers has nothing at all to do with its problems in the marketplace.
We sell milk to Aldi’s. They pay us a dollar more a gallon that what they charge for it. Its a loss leader for them to get people to buy other items in the store.
No wonder, she picked the ‘Udder’ brand.
Since the boycott began, I guess I haven’t stepped inside a Target in 2 years. Nor has any of my family. And I told everyone at church and ky entire email list.
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