FeedPosted Jan 25th 2010 2:00PM by Brian White (RSS feed)
Filed under: Competitive Strategy, Target Corp. (TGT)

Target (
TGT) will downsize its ambitions a bit in the near future. Not in growth, but store size. Instead of littering the American landscape with even more big-box stores, the second-largest discount retailer in the U.S. wants to open smaller, more urban locations.
Outlining its store strategy
last week, Target execs indicated that the retailer won't be forging ahead and a slew of larger SuperTarget locations. Instead, it will remodel existing stores and test the urban store concept to try and connect with the mass populations inside city centers instead of the folks in suburbs. Prediction: the effort won't go far. The point of people living in urban centers is familiarity and community -- the suburban feel and larger stores that compete with the mom-and-pop circuit won't cut it with city dwellers.
Continue reading Target Set to Test Smaller, Urban Stores
Posted Jan 18th 2010 11:30AM by Brian White (RSS feed)
Filed under: Competitive Strategy, Target Corp. (TGT)
After Walmart (WMT) announced home theater and other installation services in 2009, fellow retailer Target (TGT) will now be doing the same. Mostly, Target wants to be the retailer of choice for flat-panel televisions and grab installation services in that arena as well. Target's new install service will be provided by Zip Express Installation, and most likely won't affect Target in any way, shape or form.
Have you been into a Target or SuperTarget recently? The flat-panel television lineup and merchandising is absolutely atrocious compared to retailers like Walmart (which has stepped up its game considerably in consumer electronics), Best Buy (BBY) and even wholesale retailers like Costco Wholesale (COST). Is Target just playing the "me too" game or does it really think having this installation service will make those considering a flat-panel television flock to its doors?
Continue reading Target to Try Its Hand at Home Installation Services
Posted Jan 15th 2010 12:40PM by Tom Johansmeyer (RSS feed)
Filed under: Competitive Strategy, Amazon.com (AMZN), Marketing and Advertising, Target Corp. (TGT), Best Buy (BBY)
Looking back on what became a tough end to a tough year for the retail sector, the one bright spot was the online sector. Shoppers whipped out their plastic at a record rate on Black Friday, a trend that continued throughout the season.
The Amazon (AMZN) Kindle killed the competition, reinforcing the status of the online channel as the future of the retail business. Social media, in particular, had its first real test this year, as many companies -- including Best Buy (BBY), JCPenney (JCP) and Target (TGT) -- used the likes of Twitter and Facebook to engage customers, publicize sales and generally increase revenue. The next stage in the evolution, of course, is to use shopping behavior to trigger viral results.
Continue reading Can Shopping Go Viral?
Posted Jan 14th 2010 6:00PM by Steven Mallas (RSS feed)
Filed under: Press Releases, Wal-Mart (WMT), Target Corp. (TGT), Best Buy (BBY)
Target Corporation (TGT), a retailer that competes with Wal-Mart Stores, Inc. (WMT) and Best Buy Co., Inc. (BBY), had some good news today for its shareholders. Management has decided to reinstate its stock buyback program. According to the press release, the company believes the economic environment has improved to the point where reducing some of its float could be a worthwhile investment.
This buyback is a continuation of a $10 billion program begun back in November 2007. About half of that sum has already been spent; the remainder of the allocation is expected to be used up in two to three years. So, this isn't an aggressive move, certainly. And, as always, evolving market conditions can affect the intended schedule.
Continue reading Target Thinks Its Stock Is a Good Investment -- Should You?
Posted Jan 6th 2010 4:45PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Wal-Mart (WMT), Target Corp. (TGT), Family Dollar Stores (FDO)
Family Dollar Stores (FDO) is a hot stock this afternoon. As of this writing, shares were up over 11% on monster volume. Investors loved the first-quarter numbers. I found them intriguing, too.
Sales increased almost 4%, with same-store sales registering a 2.4% expansion. Net income jumped over 16% to 49 cents per diluted share. According to our earnings preview, Family Dollar was supposed to do 47 cents. Gross margin improved; one of the driving factors for this improvement was a reduction in seasonal markdowns, something I find particularly encouraging, since avoiding markdowns should always be near the top of the list when it comes to advisable actions in retail operations. In addition, management reiterated its guidance for the full fiscal year. Taking everything in total, I think we can say that the retailer delivered a strong quarter, especially in the face of the tough holiday period.
Continue reading Family Dollar Up Big on Q1 report
Posted Jan 6th 2010 11:00AM by Brian White (RSS feed)
Filed under: Consumer Experience, Competitive Strategy, Target Corp. (TGT)
After a 2009 that left retailer Target (TGT) crabwalking in regards to same-store sales growth slowdowns, the retailer is now going to experiment with a " warehouse club" strategy that will see if its mix of clean and bright retailer stores and the bulky and boring merchandising of wholesale goods will have consumer appeal.
Like competitors Walmart (WMT) and Costco (COST), Target wants to latch onto the idea that customers perusing its stores will want to continue their saving ways from 2009 and buy groceries and other goods in bulk. For seven weeks, items like paper towels, toilet paper, toothpaste and granola bars will be available in bulk packaging as Target determines interest. Is that enough time to gauge seasonality purchasing and a lot of other variables? Who knows.
Continue reading Target Tries Retail Warehouse Approach with Sales of Bulk Items
Posted Dec 28th 2009 3:30PM by Tom Johansmeyer (RSS feed)
Filed under: Internet, Marketing and Advertising, Target Corp. (TGT), Best Buy (BBY), Kohl's Corp (KSS), News Corp'B' (NWS), Media World, Technology

Revenue hasn't been as fast to change as end-user sentiment, but all that looks like it's coming to an end next year.
Social networking site
Facebook, which passed 350 million users last month, is poised to move ahead of rival
MySpace in ad revenue in 2010,
according to a report from eMarketer. The research firm expects Facebook to rake in $605 million in ad spend next year, compared to $385 million for MySpace, which is a News Corp. (
NWS) property.
According to Debra Aho Williamson, senior analyst at eMarketer and author of
Social Network Ad Spending: 2010 Outlook, "As more marketers incorporate social networks in their business, they will no longer look at them as siloed destinations. Instead, they will look to increase the impact of their social network presence by linking it to other marketing initiatives, both online and offline."
Continue reading Social Network Ad Spending Jumps in '09 and Will Keep Rising
Posted Dec 28th 2009 11:30AM by Tom Johansmeyer (RSS feed)
Filed under: Microsoft (MSFT), Wal-Mart (WMT), Target Corp. (TGT), Black Friday, Nintendo (NTDOY)
The holidays have ended, and the real sales have begun. Those choosing to sacrifice sentimentality for savings found retailers only too willing to help, as prices were slashed in the wake of the Christmas rush. Recipients of gift cards stand to see their purchasing power extended, as well, now that redemption time has arrived, and retailers are looking to squeeze in any extra sales they can to pump up their top lines before the books close on the fiscal year, which, for many, comes at the end of January.
Toys "R" Us has offered a deal on Nintendo (NTDOY) Wii games, with the second coming at half price, and Target (TGT) is nearly halving the price of wine glasses and dropping the tag on an argyle women's sweater by nearly a third. Walmart (WMT), which kicked off its cuts at the end of September, is throwing a $50 gift card on top of any Microsoft (MSFT) Xbox 360 buy.
Continue reading After Christmas, Retailers Pick Up the Pieces
Posted Dec 23rd 2009 11:00AM by Tom Johansmeyer (RSS feed)
Filed under: Wal-Mart (WMT), Target Corp. (TGT)
Anxious to grab every last dollar they can out of holiday shoppers, retailers are pulling out all the stops. Especially given the snowstorm on the East Coast last week, they have to make up some ground, and time is running out. They lost the Saturday before Christmas, one of the busiest shopping days of the year -- and a favorite of people like me who wait until the last minute.
"Super Saturday," as it's called, was off close to 13% compared to last year, says research firm ShopperTrak. Only $6.9 billion came in, off $1 billion-year-over-year. And, let's not forget that 2008 was a drag. Its $7.9 billion performance was down from $8.7 billion in 2007.
Continue reading With Christmas Looming, Retailers Make Up for Lost Time
Posted Dec 21st 2009 9:40AM by Mark Fightmaster (RSS feed)
Filed under: Amazon.com (AMZN), Target Corp. (TGT)

Here, in Cincinnati, we have about an inch of snow on the ground this morning. However, the East Coast is getting hammered and officials have advised residents to stay inside. With 20 inches of snow falling from the sky and piling up, not only are residents of the East Coast feeling the pinch, but it is possible retailers do as well. If denizens of the coast pay attention to the warnings, it could put a major crimp in last-minute Christmas shopping.
Retailer Target (
TGT) has announced that it will
open an hour earlier and remain open until midnight in Virginia, Maryland, D.C., New Jersey, Delaware, and Connecticut (along with some stores in Pennsylvania, New York, and Massachusetts) beginning today through Wednesday. The retailer announced this plan in order to give its patrons "more opportunity to make all their holiday purchases."
Continue reading Snowstorm Bad for Retailers; Online Retailers to Benefit?
Posted Dec 9th 2009 8:00AM by Tom Johansmeyer (RSS feed)
Filed under: Target Corp. (TGT), Costco Wholesale (COST), Black Friday, Limited Brands (LTD)
Sluggish retail sales in November didn't stop retailers from adding bodies. A report by outplacement consulting company Challenger, Gray & Christmas, reavealed to BloggingStocks, shows that retail sector payrolls grew to 321,300 in November, an improvement from the previous month's 233,700. This follows 54,200 retail hires in October, bringing the total number of seasonal retail employees up to 375,500. Already, that comes close to the 384,300 hired from October through December in 2008. The analysis is based on data supplied by the Department of Labor.
High expectations for the holiday season likely contributed to the up-tick in hiring. The estimated 0.5% growth from Black Friday 2008 to Black Friday 2009 was a disappointment, and November sales were off 0.3%, surprising analysts, who expected the trend to go in the other direction. Costco (COST) and Limited Brands (LTD) came out ahead, but most retailers, including Target (TGT) and Macy's (M) struggled. Saks (SKS) is also suffering from an anemic luxury goods market.
Continue reading Retail hiring up from last year, but still well below average
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