After larger rival Wal-Mart Stores, Inc. (NYSE: WMT) reported a same-store sales gain of 3.1% yesterday, Target Corp. (NYSE: TGT) did the world's largest retailer one better. Target releases results after the bell yesterday, stating that it achieved a same-store sales increase of 6.1% for August -- way above its own estimates and analyst estimates as well.Target officials placed the sales gain reasons squarely on strong sales gains and bigger receipts on electronics, health-care products and food. Target didn't even mention back-to-school specials or more customer trips due to lowered prices on these seasonal product segments. However, Wal-Mart's August sales gain was attributed to this.
Is Target continuing to ramp up higher-ticket (and margin) sales every quarter while Wal-Mart falls back into its comfort zone of dropping prices to gain sales? Seems that way, at least a little. Analysts had pegged Target's August sales to be in the range of a 5% gain, with Target's own estimates sitting in the 2.5% range. Both of those numbers were blown away. When Target sees gains in both the number of transactions and the average size of each transaction, the retailer is doing something right. Is history holds
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Reader Comments (Page 1 of 1)
9-08-2007 @ 1:49PM
harry said...
three years ago a new target opened here. we were very happy and decided to switch from walmart to target. loved the store and actually found less chinese merchandise than at walmart.. we had purchased over half our christmas presents that year with more yet to be purchased. late november it was announced that target would no longer allow the salvation army bellringers to stand in front of their stores. my wife and i called our local store and corporate complaining about this new policy. they were told we would not step foot in their store again if this policy stood. we have not and will not!! i think i remember the amount of 17 million dollars was collected previous years at targets. target tells us they donate 2 million each year to the salvation army.. gee---what about the other 15 million which could have helped a lot of people. i also remember that gays and lesbians were calling for a boycott of the salvation army because they wouldnt allow their kind in positions of authority....it makes one wonder..