topic Re: Target Sale in Community Chat

Target Sale

PickyPicky3 — Thu, 18 Aug 2022 12:57:52 GMT

Yesterday Target announced low second quarter profits, their stock is down, and prices have been cut.

Apparel, shoes and accessories are 30% off. I don't need anything, but my inner teenager bought graffiti jeans.

Other merchandise prices also cut.

Re: Target Sale

godi — Thu, 18 Aug 2022 13:03:19 GMT

You wouldn't know it in our target. Always lines and parking lot full. They are remodeling it too.

Re: Target Sale

Pearlee — Thu, 18 Aug 2022 13:28:53 GMT

@godi wrote:
You wouldn't know it in our target. Always lines and parking lot full. They are remodeling it too.

Same with ours. I was just there yesterday.

Re: Target Sale

ThinkingOutLoud — Thu, 18 Aug 2022 13:45:32 GMT

Haven't shopped target in years. Easy pass.

Re: Target Sale

MorningLover — Thu, 18 Aug 2022 14:10:46 GMT

Target profit plunges 90% as inflation-weary shoppers pull back

August 17, 2022

New York (CNN Business) Target reported profit plunged 90% in the second quarter, falling far short of expectations, as inflation-weary customers pulled back on spending on nonessential items.

Retailers, including Target, have been forced to cut prices on general merchandise, such as clothing, electronics and home goods, because of excess inventory of goods.

Consumers had to shift more of their spending to higher priced food and gasoline.

But Target reported that its price cuts did little good: It ended the quarter with 1.5% more inventory than it had three months earlier and 36% more than it had a year ago.

The company said it reduced the amount of discretionary items it held in warehouses, but Target noted the sales on those items "put significant pressure on our near-term profitability." Shares of Target (TGT) fell 3% in morning trading on the report.

Plunging earnings, once again

Target's quarterly net income fell to $183 million, down significantly from $1.8 billion during the same period a year ago.

Plus, its adjusted earnings of 39 cents a share were far below the 72 cents forecast by analysts surveyed by Refinitiv. Sales of $26 billion were up slightly from a year ago and roughly in line with forecasts.

After seven quarters of strong profit growth, this marks the second-straight quarter of plunging earnings at Target — and this decline was much more significant than the 40% drop in the previous quarter.

Consumers' pullback on demand for discretionary items is one of the factors raising fears of a recession, as consumer spending is responsible for nearly three-quarters of the nation's economic activity.

Target's disappointing results came in contrast to much stronger results at larger rival Walmart (WMT), which Tuesday reported profit was down only slightly from a year earlier. Walmart also said it expects a 8% to 10% drop in annual earnings, though that's a narrower drop than it previously forecast.

'Feeling the impact of inflation'

The environment for Target and similar retailers remains "challenging," CEO Brian Cornell told investors Wednesday. But Target is seeing "an encouraging start to the back-to-school" shopping season, he said.

He believes the hit to earnings in the recent quarter shouldn't be repeated: "The high-level story is: The vast majority of the financial impact of these inventory actions is now behind us."

Still, it's a difficult time to be a retailer given the unpredictability of consumer spending activity and the effect of macro factors like inflation.

Target is "hearing from our guests is that they still have spending power but they're increasingly feeling the impact of inflation," said Christina Hennington, the company's chief growth officer. She said the drop in gas prices in the last two months was "encouraging," however.

These trends are not unique to Target. A recent government report echoed Hennington's comments, showing retail sales at general merchandise stores like Target fell 0.7% in July compared to June when adjusted for seasonal factors — even as overall retail sales remained essentially flat in the same period.

And spending at gas stations fell by $1.2 billion in July compared to June due to the lower gas prices Hennington mentioned.

Target's heavier dependence on discretionary vs. Walmart

These trends are hitting Target harder than rival Walmart, which gets a greater share of its sales and profits from essentials like groceries. Target typically depends more on those discretionary items.

Walmart has a reputation for offering the lowest prices among big-box retailers in many categories — in its earnings report Tuesday, the company said sales to middle and higher - income shoppers has increased.

Re: Target Sale

millieshops — Thu, 18 Aug 2022 14:46:19 GMT

I don't know what the traffic requirements were for Target when they opened a store sort of near me, but even a dozen years ago when my sight was sharper, I found just getting into their parking lot to be dangerous. I rarely go, but if I do it's most likely only for groceries.

Re: Target Sale

gidgetgh — Thu, 18 Aug 2022 15:41:46 GMT

I bought some bras on Target online and did curb pickup yesterday. I got the 30% off. I was thrilled. I was going to buy them anyway.

Re: Target Sale

PickyPicky3 — Thu, 18 Aug 2022 15:48:17 GMT

I also bought some bras curbside two weeks ago. They didn't fit. When I started an online return, I was told they didn't want them back and was given a refund.

I'm still trying to think of who might use them before they go to Goodwill.

Re: Target Sale

scatcat — Thu, 18 Aug 2022 16:40:17 GMT

I took advantage of the sale. I like their Joy Lab brand.

My store has long lines becomes there are only 3 registers open and self check out always has 1 broken register

Re: Target Sale

Jacie — Thu, 18 Aug 2022 21:59:14 GMT

I don't feel sorry for Target at all. They were allowed to stayed open while the rest of the world was shut down. Many lost their businesses while Target thrived. Now, it's their turn, they have to have to take the bad with the good.

Karma is a funny thing.

Re: Target Sale

gidgetgh — Thu, 18 Aug 2022 22:19:13 GMT

@Jacie wrote:
I don't feel sorry for Target at all. They were allowed to stayed open while the rest of the world was shut down. Many lost their businesses while Target thrived. Now, it's their turn, they have to have to take the bad with the good.

Karma is a funny thing.

@Jacie - they were considered an essential business, just like Walmart, drug stores, grocery stores, etc. How on earth is this karma?

Re: Target Sale

Jacie — Thu, 18 Aug 2022 22:25:57 GMT

@gidgetgh interestingly enough I am retired from Target. They were no more an essential business that the small businesses down the street. Who, could have easily decided how many people could be in their store at any given time as well as other situations involved with the shut-down. But they weren't allowed to make that decision.

Target also purchases most of their goods from China, and has lobbied hard to support the import of those goods. In light of all the money they raked in, and knowing that they thrived while small businesses were forced to fail, I don't feel sorry for them in the slightest. They got their just desserts being down 90%.

Re: Target Sale

stevieb — Thu, 18 Aug 2022 22:33:49 GMT

@Jacie wrote:
I don't feel sorry for Target at all. They were allowed to stayed open while the rest of the world was shut down. Many lost their businesses while Target thrived. Now, it's their turn, they have to have to take the bad with the good.

Karma is a funny thing.

Oh brother... What, they were supposed to willingly shut down for you...? This has nothing to do with Karma...

I relied heavily on Target delivery during the height of the pandemic and still do. Their offerings were a tremendous help that smaller retailers could never have been, though I'm sorry so many of them went under.

I do not in any way wish any retailer any harm in this lousy retail environment. I have noted Target's prices have been less competitive in recent months and so in some cases have adjusted my purchases accordingly.

I have no desire to see Amazon and Walmart as the two last men standing, so wish Target well, along with other retailers, and am also hopeful that at some point more effective leadership will help balance the economic scales.

Re: Target Sale

gidgetgh — Thu, 18 Aug 2022 22:35:21 GMT

One of the 2 Targets closest to me is a super target. Groceries, pharmacy inside, Optician. Essential services. I was so pleased that they were able to stay open during the lockdown. I went there frequently to get essentials or to look for essentials as places everywhere were out of essentials.

I hated that any business had to close, but was so glad that stores like Target and Walmart were able to stay open.

Re: Target Sale

stevieb — Thu, 18 Aug 2022 22:43:16 GMT

@gidgetgh wrote:
One of the 2 Targets closest to me is a super target. Groceries, pharmacy inside, Optician. Essential services. I was so pleased that they were able to stay open during the lockdown. I went there frequently to get essentials or to look for essentials as places everywhere were out of essentials.

I hated that any business had to close, but was so glad that stores like Target and Walmart were able to stay open.

I agree @gidgetgh, they were a lifesaver for me, along with other retailers offering viable delivery services. My local store is not among the best Targets I've seen, but I was and am glad to have it.

Re: Target Sale

Jacie — Thu, 18 Aug 2022 22:43:27 GMT

@stevieb Seriously? No I didn't expect Target to shut down for me! But they made a pretty penny off the pandemic. Target is about Target, not the customer....everything Target does is for Target and the shareholders. Period. So glad you get the warm fuzzies from them, I don't. They can take the bad now that they had the good, and at so many others expense.

Re: Target Sale

stevieb — Thu, 18 Aug 2022 22:47:54 GMT

@Jacie wrote:
@stevieb Seriously? No I didn't expect Target to shut down for me! But they made a pretty penny off the pandemic. Target is about Target, not the customer....everything Target does is for Target and the shareholders. Period. So glad you get the warm fuzzies from them, I don't. They can take the bad now that they had the good, and at so many others expense.

@Jacie No warm fuzzies, don't expect them from a large retailer, but did get reliable service in the way of essentials that smaller retailers could never have matched. I have also found their customer service is always ready to make things right when problems arise. Let's just agree to agree on your Garfield quote and not so much about the value of Target or what they 'deserve'.

Re: Target Sale

gidgetgh — Fri, 19 Aug 2022 17:52:35 GMT

Lightening it up a little, Target will report today that bra sales are up. I've been dieting and have recently changed bra sizes, so I went to get my favorite bra at Target. What!! It's on clearence???? Noooooo.....

You know what that means ladies. I bought all I could find in my new size at the 2 Targets closest to me. That wasn't very many at all. The 3rd Target was sold out. And then I ordered some online, in the even the next size down and that should take me to my weight loss goal.

Target execs are pouring over the sales numbers right now and scratching their heads. What the heck is going on in metro Atlanta with bra sales?

And your friend Gidget? In great shape for new bras for the foreseeable future, LOL.

Re: Target Sale

mspemberley — Fri, 19 Aug 2022 18:13:28 GMT

I'm sharing this just to give perspective to the conversation. Below is the financial report from Target on a graph. As you can see Target is doing just fine. It only looks dire when you compare year-to-year because 2021-early 22 was unprecedented. This will probably get my post deleted but the graph tells the story.

Re: Target Sale

JeanLouiseFinch — Fri, 19 Aug 2022 18:25:00 GMT

It's also possible that the stance Target has taken on some controversial social issues have turned some people off, so they're doing their shopping elsewhere. Of course, Target wouldn't factor that into their equation.