Target’s Sales Growth Slipped Below 1.5% in 2 of Last 3 Months
December 24th, 2007
That’s below rival Wal-Mart Stores’ rate and well below Target’s historical average. Many thought the “upscale discounter” would benefit from an influx of economy-spooked shoppers skipping mid-priced department stores like Macy’s. Instead, Target seems to be suffering from reduced store traffic and a phenomenon called, “trading down within the store,” which has shoppers stocking up on low-margin cleaning supplies and other stables, while forgoing higher-margin apparel and home goods. Investors are concerned; they’ve pushed the retailer’s stock down 12 percent, to $50.68, over the past year. (In the same period, Wal-Mart’s stock rose 5 percent.) The New York Times (Dec. 24, 2007)
Tags: , Target Stores, Wal-Mart Stores