Number One, for the Wrong Reasons

Lee and I have a list of companies we hate, and Target is currently at the top. Target has struggled to differentiate itself and compete effectively against Walmart (NYSE: WMT) and Costco (NASDAQ: COST). Missteps such as controversial product placements and overall poor management have left Target in a difficult position, unable to attract and retain customers, especially compared to Walmart, which continues to dominate the retail space.

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Transcript:

So Lee and I keep a list of companies we hate.

We love to hate them.

We really, really despise them.

Right now, one of the companies on that list is Target.

Target is going nowhere fast.

It’s flatline.

They’re up against Walmart.

They always wanted to be sort of the Walmart Jr., but Walmart has 46.

Upscale Walmart.

Right, exactly.

You know, you’ve got people in Mercedes shopping at Walmart, so I don’t know how that’s going to work.

But, you know, I think they’ve got 20 or 25% of the store cap that Walmart does.

They have a crummy experience.

The guys who snuck in and really beat them over the head was Costco.

People are willing to pay money.

I love Costco.

I hate Target.

I love Costco.

People pay money to shop at Costco.

They give them money, like $100.

Same with Sam’s.

Yeah.

But I’m saying that that’s to me, that’s the most insanely successful retail model you can have is you get the hot dog combo.

But still, you get people.

I say I’m going to pay you, the retailer, to come to your store and shop.

That’s how good it is.

I don’t know if you spend much time at Costco.

I do.

But it’s awesome.

Everything is great.

The stuff is good.

You can get a box of Cheerios that’s as big as a small person.

And they have fresh meat.

And it’s just great.

And like insurance.

And you can go in there and get hearing aids.

Sell Rolex.

Or buy a kayak.

Or buy a kayak.

We did in Hawaii.

Did you?

You bought a kayak in Hawaii?

In Hawaii, we did, sure.

Target is none of those things.

To me, that’s their big problem.

There’s nothing distinct about Target.

There’s no reason to go to Target at all.

No, there’s not.

You know, they had their Bud Light moment, you know, a year or so ago with all of them.

And this isn’t to cast anything towards anybody, but all the LGBTQ, WXYZ, Pride stuff happened.

You know, it was a huge, huge mistake for them to put that so out front and, you know, load all the merchandise up into the front.

And that’s the kind of thing like we had discussed before.

Once you push that customer away, they’re not going to forget it.

And there’s a lot of people that don’t drink Bud Light to this day or any Budweiser product for what they did.

And that huge faux pas with customer relations, that may never go away.

Well, it doesn’t go away to the extent we talked about places like Starbucks having this problem.

Right.

And obviously Budweiser.

Once you offend people at a certain level, you have to go out and replace those people with new customers.

Literally, you’ve now lost.

It’s like the cable TV business.

Right.

If Disney Plus loses a subscriber, they’ve got to go find a new subscriber to come in and take that person just for their revenue to stay.

Stay even.

Stay even.

Yeah.

Right.

Yeah.

So I hate Target because it just can’t get out of its own way.

It aspires to be Walmart.

It’s been flanked by Costco.

It’s just horribly run.

Both of those are good examples of why.

So Target.

Oh, double down for those guys.

We despise Target.

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