Slow economy cools Target's Christmas

St. Paul Pioneer Press ^ | 12/23/2007 | MICHAEL BARBARO

[rhema]

It was supposed to be a Target Christmas.

Buffeted by high energy costs and a slowing housing market, consumers were expected to trade down from mid-priced department stores, like Macy's and Nordstrom, to discount retailers with designer cachet - Target's undisputed terrain.

But instead of dominating this holiday season, Target is muddling through it, perplexing rival merchants and Wall Street analysts, who consider the chain a bellwether and are scrutinizing its performance for clues on the health of the economy.

In two of the past three months - September and November - Target's sales growth has slipped below 1.5 percent, well under its historical average and lower than its biggest rival, Wal-Mart Stores.

Target's chief executive Target, Robert Ulrich, has warned the company may not meet its earnings forecast for the final three months of the year, on the heels of a third-quarter performance he described as "disappointing."

[org.whodat]

It might help not to have so much over priced Chinese junk.

[xcamel]

Many others are reporting excellent sales... but that will never get reported..

[rhema]

Maybe if Target were to take a more neutral stance in the culture wars. . .

[JLS]

Target is much tougher to deal with than Walmart. I am sympathetic with retailers wanting to keep their customers from returning things willy-nilly, but you must meet the competition. Given a choice, I always opt for Walmart due to this single reason.

[donna]

It could be those Target TV ads. I saw those ads for 6-months before I realized they wanted me to shop at a Target store.

http://www.youtube.com/watch?v=JHNpHisPUf8

[WildcatClan]

Slow economy.......... I keep hearing that. What’s the difference in this economy and the “great” economy that saw Slick Willy get re-elected in 1996? The MSM, paving the way for a Clinton since 1992.

[PrincessB]

Agreed. Part of Target’s problem is that they want to sell faux designer stuff. You can’t get a shower curtain liner under $20, decent contact paper and there is a minimal selection of laundry detergents. This is the stuff that drives the discounters.

If I want to buy a sweater, I am going to go to Macy’s, Nordstrom, etc. The only reason I’d get one at Target is if I saw it in passing while purchasing the other stuff.

Since I go to other stores for the shower curtain liner (usually under $10), etc. and I’ll purchase clothes at other stores too.

[digger48]

It was the Target Fortune that bought a Senate seat for one of the dumbest men to ever sit in Congress.

Mark Dayton

[shiva]

I’m with you there, JLS. Wal-Mart will take anything and everything back, with or without a recipt. But there is one thing I like at Target more than Wal-Mart. Target stores are very clean and neat.

[Obadiah]

Slow economy??? Just last week they reported economic growth of 4.9%! What slow economy?

[VOA]

Target is much tougher to deal with than Walmart. (snip)
Given a choice, I always opt for Walmart due to this single reason.

That's the deciding point for my dear old mother.
I'd say she spends about 4 dollars at WalMart for every dollar she
spends at Target.

Mainly because if she's dissatisfied or decides she doesn't need some
item, at WalMart she walks up to customer service with the item and
receipt...and the WalMart folks just hand her the purchase price
back in cash.
The same operation at Target is much more of a hassle and involves
all sort of machinations to convince her to "take a copy" or
"take a credit".

[rawcatslyentist]

Slow economy??? Or Godless atheists don’t celebrate Christ’s birth?

Target is well known for its pro homo - anti Christian promotions. Why should they expect people (IE Christians) to be insulted where they shop?

[MrLee]

My reasoning too.

[Psycho_Bunny]

How completely idiotic.  Who wants to see a washboard on a woman?

Commercials like this are precisely why I had my cable disconnected.  They just make you crazy.

[AlphaOneAlpha]

FROM THE ARTICLE:
“But the bigger issue, in their view, is that the number of customers walking into Target’s stores has dropped. They see that as a sign not of any tactical failure on Target’s part, but of rising doubts among consumers about the economy.”

FYI, two neighbors told me in mid-November that they and many others in their church refuse to shop at Target and Sears due to their continued out of fashion insistence of boycotting the use of the word Christmas while most other retailers, politicians, etc have reversed position on that PC silliness. Perhaps THAT is why store traffic has dropped at Target....but I suppose they aren’t even thinking about looking into that conundrum

[denydenydeny]

Unfortunately, the MSM still has the ability to say something over and over and thereby get it out into the public consciousness. It worked in Iraq for a good while, and it seems to be working in the public’s view of the econooy.

If you want a really slow economy, elect a Democrat president.

[donna]

In 2005, Target kicked out the Salvation Army bell ringers, too. I wonder if they changed that.

[mozarky2]

I’ve been in Target stores twice. I can’t believe I went the second time, because after my first visit, I decided that I would never need to go again.

[donna]

Yes, a total disconnect.