"Target plans to refocus on the needs of "busy families," new CEO Michael Fiddelke told investors yesterday as the retail chain tries to win back customers. The issue: Target has been struggling to turn itself around ever since a pandemic-era revenue boom subsided into stagnancy. Some customers told CNBC that they feel store inventory is lacking and that they aren't fans of Target's DEI rollbacks."
"More baby care and groceries, and less of being "an everything store," Fiddelke said. The company said it'll invest an additional $1 billion in its supply chain, technology, and stores, including staffing (meanwhile, Target cut 1,800 corporate jobs in October)."
"Target posted its fourth straight quarter of declining store and online traffic, and revenue came in even lower than Wall Street's already low expectations. The good: The retailer's earnings actually beat estimates. Another bright spot: Target's same-day deliveries-which compete with Walmart's and Amazon's offerings-grew more than 30%."
Target is attempting a turnaround after pandemic-era revenue gains stalled into stagnancy. New CEO Michael Fiddelke announced a strategic refocus on busy families' needs, emphasizing expanded baby care and grocery offerings while moving away from being an "everything store." The company will invest an additional $1 billion in supply chain, technology, and stores, though it cut 1,800 corporate jobs in October. Recent earnings showed declining store and online traffic for the fourth consecutive quarter with revenue below expectations, but earnings beat estimates and same-day deliveries grew over 30%. Target projects 2% net sales growth for the fiscal year ahead.
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