Target to attract value-hungry buyers this holiday season to shoot up sales
Category: #business |   By Shreya Bhute  |   Date: 2022-12-21

Target to attract value-hungry buyers this holiday season to shoot up sales

Target, the well-known big-box department store chain based in the U.S., is reportedly hoping to revive its sales by attracting value-minded shoppers during the holidays.

Apparently, Target now faces greater risks during the holiday shopping season after posting weak financial performance for the previous three quarters and downsizing its outlook for the current one. As sales have dropped, excess inventory has hurt the company's revenues.

Target is operating in a market where firms must put more effort into enticing people sick of inflation to spend money. With the middle-class and upper-class consumers spend money on other things like commuting, holidays, and sending children to piano classes and soccer camps, more significant gains from the Covid pandemic will be put at stake.

Fewer things are still on people's wish lists because many have already restocked their closets and invested in expensive products like flat-screen TVs. Even more affluent households are gravitating towards Walmart and other budget stores as they provide lower-cost groceries.

There is also pressure on other retailers. While seeking new CEOs, Kohl's, Gap, and Under Armour are all navigating the current holiday season.

While it reduces the size of its stores and its personnel, Bed Bath & Beyond is attempting to grow its customer base. In fact, nearly all retailers are attempting to get their inventory in a cleaner condition while balancing unsold merchandise and more price-conscious customers.

But with a market price of roughly $66 billion, Target is by far the largest of these businesses and has a lot at stake. Over 37% of Target's stock has been lost so far this year. Target failed fiscal first-quarter earnings in May and issued a warning in June that it would take a fall in earnings as it discounted down merchandise.

Cara Sylvester, Target’s chief guest experience officer, stated that with so much uncertainty within the market and the growing inflation, the firm is not  expecting positive sales in the upcoming year.

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Shreya Bhute    


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