Archived Target Financials

[Anelmi]

Target has terrible holiday and warns of awful 2017


"But Cornell now faces another problem that might not be so easy to fix -- convincing consumers there's a reason to put their phones down and head back to the mall."

And I guarantee harping/depending on Red Cards is NOT the way to do it.

 

[SrTLall]

Target has terrible holiday and warns of awful 2017


"But Cornell now faces another problem that might not be so easy to fix -- convincing consumers there's a reason to put their phones down and head back to the mall."

And I guarantee harping/depending on Red Cards is NOT the way to do it.

You do realize how much money is made by Target through RED Cards? Not only is it a money-maker, they really build loyalty. Although you may not like driving them, they are an integral part of the company's long-term success.

 

[Anelmi]

You do realize how much money is made by Target through RED Cards? Not only is it a money-maker, they really build loyalty. Although you may not like driving them, they are an integral part of the company's long-term success.

I think the new Cartwheel does far more to drive loyalty and that is a free app. And how is a debit card a money-maker?

 

[SrTLall]

I think the new Cartwheel does far more to drive loyalty and that is a free app. And how is a debit card a money-maker?

Is that rhetorical or are you seriously asking that?

 

[Anelmi]

Well, yes.

I admit I'm not financially savvy but if it's linked to a checking account, how is Target making money? I understand the credit card with the interest rate and late fees but how do they benefit if the guest uses a debit card?

 

[Leonhart621]

Holy shit what the fuck happened to the stocks

 

[HRZone]

Target makes money with the debit card because people who use it often buy more thanks to the five percent discount. They sometimes buy things they would normally get at another store because of the discount.

 

[HRZone]

Holy shit what the fuck happened to the stocks

Are you really surprised? After a terrible 3rd quarter they hyped the 4th like we were going to turn it around and we weren't even close.

 

[unknown]

Target makes money with the debit card because people who use it often buy more thanks to the five percent discount. They sometimes buy things they would normally get at another store because of the discount.

I've heard people say this many times. Is there any objective proof to support this? It is probably true, but that doesn't make it a fact.

 

[garbage]

You do realize how much money is made by Target through RED Cards? Not only is it a money-maker, they really build loyalty. Although you may not like driving them, they are an integral part of the company's long-term success.

Target makes money with the debit card because people who use it often buy more thanks to the five percent discount. They sometimes buy things they would normally get at another store because of the discount.

Nope, nope, nope, nope, and nope.

This is believed by people sitting in a boardroom and looking at numbers and reports all day, with little real world retail experience.

The numbers are correct, people with RedCards shop at Target more and spend more. But the reasoning behind it is flawed. The card is not causing them to do that, they were, in all likelihood, already loyal Target shoppers before they signed up for a RedCard. A lifelong Walmart shopper, stopping by to pick up a gallon of milk is not going to sign up for a RedCard.

The card itself does little, if anything, to cause the guest to spend more. 5% is a minuscule amount off. Same for CartWheel in my opinion. A Walmart shopper isn't going to download CartWheel, and all of the sudden become a loyal Target shopper.

Target spending all this money on shit like CartWheel and hustling guests for RedCards, all the while having one register open, constantly in fast service with nobody to help a guest on sales floor is going to kill off the already loyal, Target shoppers.

People shopped at Target because of the friendly service, clean store, available assistance on the sales floor, and short register lines.

EDIT:
One more point I'd like to add. A Walmart shopper stops by to pick up a gallon of milk. Which is more likely to create a loyal customer? Pushing them to sign up for a RedCard to save 5% ?
or..
The customer walks into a clean store, quickly spots someone to ask for help. The associate is friendly, and walks them to the product. The product is neatly organized. The customer then heads up front, where multiple registers are open, with little, if any line. The cashier does not try to convince the already in a rush customer to sign up for anything. The bathrooms were clean and there wasn't a shitload of shopping carts scattered throughout the parking lot.

 

[RTCry]

"The company needs to do a better job executing and attracting shoppers looking to just pick up a few items (vs. stocking up). We also believe food remains a work in progress," Chen wrote.

From OP's link. Bingo!

 

[Targetcar]

Holy shit what the fuck happened to the stocks

So painful. Good thing I sold my stock last night. I had a bad bad feeling about today. After 11 years I officially have zero ties to Target now that I don't have stock in the company. That was the last tie. Feels so freeing yet sad at the same time (ehh well not that sad who am I kidding?)

 

[Hardlinesmaster]

Spot does not own the red card portfolio anymore. Stock is at all time low. I had listen to folks at the breakroom & diversify my 401k options.

 

[Pale]

As much as I hate to see Spot go down, it's also fun to watch. A large, multi-national company, loses 40% of its stock in a span of a few months. Let's hope it recuperates like it did in 2009 with an exponential growth.

 

[Leonhart621]

Are you really surprised? After a terrible 3rd quarter they hyped the 4th like we were going to turn it around and we weren't even close.

Not really that surprised but dropping in double digits in just one day, damn.

 

[Frontlanegirl]

This!! The customer walks into a clean store, quickly spots someone to ask for help. The associate is friendly, and walks them to the product. The product is neatly organized. The customer then heads up front, where multiple registers are open, with little, if any line. The cashier does not try to convince the already in a rush customer to sign up for anything. The bathrooms were clean and there wasn't a shitload of shopping carts scattered throughout the parking lot.

How is Target able to answer the fact about poor customer scores throughout its stores? Can't blame the employees.

 

[Stubio]

I'm sure the market rollout where they just let stores flop around like fish figuring things out on their own didn't help.

Oh well at least there wasn't another botched rollout into another country.

 

[Redzee]

"transition to a new financial model"
Wonder what that means?

 

[BoxCutter]

Obviously, the future is online. Currently, however, we have a CEO whose experience is mostly brick and mortar stores. Target's board of directors have got to hire a new CEO whose background and experience is in a successful online business model (preferably Amazon) but has a vision to leverage a majority of Target locations to support and enhance those online sales. Keeping a B&M person at the head of the company is just going to keep repeating these dismal quarterly and yearly results.

 

[Frontlanegirl]

Target needs to work on those online orders being packaged correctly. Tired of returning items that are damaged because items are not packaged correctly. Putting a mirror in a box without packaging to keep it from breaking is stupid. Invest the time and money in correct packaging standards.

 

[unknown]

While I agree online shopping will become more prevalent, people like to get out and look at stuff. Buy a Starbucks. A popcorn. Touch clothing.

That is why it's so important to provide a stellar shopping experience. Beginning at 8am.

Not have pallets of product clogging aisles. No help on the floor. No cashiers until 10am.

This won't cut it.

 

[glo]

This!! The customer walks into a clean store, quickly spots someone to ask for help. The associate is friendly, and walks them to the product. The product is neatly organized. The customer then heads up front, where multiple registers are open, with little, if any line. The cashier does not try to convince the already in a rush customer to sign up for anything. The bathrooms were clean and there wasn't a shitload of shopping carts scattered throughout the parking lot.

How is Target able to answer the fact about poor customer scores throughout its stores? Can't blame the employees.

I think there's more than service to blame fore the decline in retail sales. Convenience definitely outweighs service to the average consumer and unless you need a product same-day, Amazon's got everyone else beat in convenience.

 

[SFSFun]

Obviously, the future is online. Currently, however, we have a CEO whose experience is mostly brick and mortar stores. Target's board of directors have got to hire a new CEO whose background and experience is in a successful online business model (preferably Amazon) but has a vision to leverage a majority of Target locations to support and enhance those online sales. Keeping a B&M person at the head of the company is just going to keep repeating these dismal quarterly and yearly results.

Target needs to figure out what to do to accommodate growth in online sales, and they need to figure it out fast. Every year, digital sales in Q4 increase by around 30% and we won't be able to keep up with that for much longer. They've added SFS to every store where it was conceivable to make room for it, and many of the stores were sent upwards of 1000 orders per day during the peak weeks. They can't increase it much more because we don't have room for 30+ people to be working on SFS all at the same time.

I think there's more than service to blame fore the decline in retail sales. Convenience definitely outweighs service to the average consumer and unless you need a product same-day, Amazon's got everyone else beat in convenience.

I noticed that Walmart is now offering free (w/$35 min purchase) two-day shipping on some items. That is probably where Target is heading next. They already have a pilot program where select stores stage local orders separate and a logistics company picks them up at 3:30am the next day and delivers them to the local post offices. The main problem seems to be that there are a lot more steps for SFS TMs and they need a TM and a keyholder in the building at 3am each day to prepare for pickup.

 

[NKG]

Boycott isnt helping. I have been in the womens bathroom a thousand time's and never ran into a questionable female/male. I think people are blowing this out of the water. Target needs to go back and clarify their policy. I have never felt scared to go to the restroom at Target even at 9pm at night. I would say being alone in the backroom will scare me before the restroom policy.

 

[Frontlanegirl]

Boycott isnt helping. I have been in the womens bathroom a thousand time's and never ran into a questionable female/male. I think people are blowing this out of the water. Target needs to go back and clarify their policy. I have never felt scared to go to the restroom at Target even at 9pm at night. I would say being alone in the backroom will scare me before the restroom policy.

I don't believe Target needs to clarify. We know what their stance is. Let sleeping dogs lie.