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Since late last year, retail has been hurt as the recession dug in for the winter and stayed throughout the start of the 2009 summer. Although job loss data for May just in indicates a steep drop (leveling off perhaps?), consumers are still pinching pennies and keeping savings under the proverbial mattress. One of the continuing casualties -- Target Corp. (NYSE: TGT).The second-largest discount retailer in the U.S. said that same-store sales for May came in at a -6.1% level -- worse than analysts had forecast. Target CEO Gregg Steinhafel indicated sales "were somewhat below our expectations." By comparison, average same-store sales from 32 retailers in May dropped 4.6%, putting Target at a worse-performing range than most.
The bellwether for same-store retail sales in the discount sector -- Wal-Mart Stores, Inc. (NYSE: WMT) -- won't be available now that the world's largest retailer is not reporting same-store sales on a monthly basis. If recent history holds, Wal-Mart most likely had a small positive same-store sales increase for May, but there is no way to tell. One thing is certain: Target is faring worse than the general retail sector and apparently is not benefiting (nor did it take advantage of) the recent demise of electronics retailer Circuit City to pad its consumer electronics sales. Pity.
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Reader Comments (Page 1 of 1)
6-05-2009 @ 7:45PM
exemployee said...
Here's one clue as to Target's decline. TPTB have decided to change their coupon policies, limiting certain coupons,etc. Also every time I use my coupons there it's such a hassle because the cashiers treat me so badly. Maybe they better be happy to have customers, even those of us who use coupons.
I've used coupons forever but I think most people are using them today and we're going wherever the nicest cashiers and coupon friendly stores are!