24/7 Insights
- Target Corp. (NYSE: TGT) has cut prices on about 5,000 items for reasons only known by company management.
- Meanwhile, Walmart Inc. (NYSE: WMT) has been outperforming its rival.
Target Corp. (NYSE: TGT) has cut prices on about 5,000 items for reasons only known by company management. Retailers rarely do this if they are making money from the inventory.
Most price cuts are in a few categories. According to the retailer, “Consumers will enjoy savings on everyday items such as milk, meat, bread, soda, fresh fruit and vegetables, snacks, yogurt, peanut butter, coffee, diapers, paper towels, pet food, and more.” Interestingly, its largest competitor, Walmart Inc. (NYSE: WMT), is the number one grocery store in America. Many analysts believe that people who come to Walmart for groceries also buy other items.
The promotions focus on the big holiday periods: Memorial Day, the Fourth of July, and Labor Day.
Target’s financials and stock price have been weak compared to Walmart’s. In the past year, Target’s stock has been up 5%, while Walmart’s is 25% higher. Walmart’s recent impressive earnings drove its share to an all-time high of $65.
Target’s recent earnings showed revenue rose only 1.6% to $31.5 billion. It said comparable store sales in the current quarter would drop from 3% to 5%.
Target’s numbers are not impressive. It needs a special promotion.
Discover 20 Stores Like Target: Best Alternatives and Affordable Options
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