Holiday shock for Target

Video Credit: Reuters Studio
Published on January 15, 2020 - Duration: 00:58s

Holiday shock for Target

Target's holiday sales fell short of its own targets, sending its shares and those of other retailers sharply lower in Wednesday morning trading.

Fred Katayama reports.


Holiday shock for Target

Shares of Target tumbled Wednesday after reporting weak holiday sales.

They grew just 1.4% , falling far short of the 3-4% growth the retailer itself had predicted.

And that's sharply lower than what it had achieved a year ago.

Growth in online sales slowed, and the big holiday categories of toys and electronics fared poorly.

It's a big setback for Target, a retailer that, investors believed, had successfully adapted to the new world of online commerce.

It had consistently expanded its sales quarter after quarter as it remodeled stores and improved ways of delivering goods to its customers.

Target shares, which had nearly doubled in value last year, tumbled more than 7% Wednesday morning.

And that dragged down shares of other retailers and toy makers.

Holiday sales have also dropped at traditional department store chains Kohl's, J.C.

Penney and Macy's.

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