Blog: Target misses its aim
Leonie Barrie | 18 November 2008
Target, the US’ second largest discount store chain, made a mark for itself by teaming up with designers such as Isaac Mizrahi to set the standard for mass-market, cheap chic fashions. But now its customers don’t want trendy designer clothes and home decor – at least not in the same volumes as before – and are switching to even cheaper rivals such as Wal-Mart for basics like food and toiletries.
In its third quarter results release yesterday (17 November), Target said net earnings slipped 23.6% to $369m from $483m. Total sales rose 1.9% to $15.1bn, helped by the addition of new stores, but same-store sales in its retail segment dropped 3.3%.
Worryingly, however, its credit card business points to the troubles ahead, with profits here slumping 83% to $35.0m. While this is just a small share of the firm’s total turnover, its significance is that this decline in performance was partly due to higher bad debts as shoppers struggled to pay their bills.
All of which doesn’t bode well for the holiday season. As a result, Target has “temporarily suspended” most of its share repurchase activity, and reduced 2009 capital expenditures by about $1bn. It is also planning an aggressive campaign to “deliver compelling reasons” for people to shop at Target including “great prices” on everyday basics and fashion items.
Even so, it still expects same-store sales to fall by 6-9% in November.
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
This week our focus turns to first thoughts from a panel of industry experts consulted by just-style on the challenges and opportunities likely to face the apparel supply chain in 2017, with prospects...
- US apparel sector braces for potential cost hikes
- Does a hard Brexit mean hard times for UK fashion?
- Trade Tracker – Trump's first weeks, Brexit agenda
- Key trade issues facing US textiles and apparel
- Primark challenges critics with cotton initiative
- Li & Fung dropped from Hang Seng Index
- Bangladesh "high threat" for terrorist activity
- Vietnam apparel exports miss 2016 target
- Trump talks of tweaking NAFTA trade with Canada
- H&M leads Better Cotton league
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022