Latest news with #TargetCorporation
Forbes
12 hours ago
- Business
- Forbes
The Real Reason Target Is Failing While Walmart Prospers
The Real Reason Target is Failing While Walmart Prospers The history of modern retail is often the history of the people who founded the companies that became household names. As such, you might say that many legendary, successful brands have souls or a set of basic principles that somehow outlast their founders. It also follows that there is often a price to pay when companies lose or sell their souls or stray from their principles. For example, Ray Kroc gets credit for growing McDonald's into a global phenomenon but it was the founders—McDonald brothers Richard and Maurice—who came up with the Golden Arches design and whose obsession with operational efficiency remains the North Star of the company's management today. When McDonald's tried to introduce salads and gourmet sandwiches in the early 2000s, customers balked and the stock price cratered. It took three years of getting back to its principles for the price to recover. Target, the struggling discount department store, is the latest example of a brand that has lost its soul. The principal behind the 1962 launch was co-founder Douglas Dayton, grandson of the founder of Dayton's, a popular up-scale chain of department stores in the Midwest. Target began as a discount store that aimed to 'combine the best of the fashion world with the best of the discount world.' The logo represented 'hitting the mark'—the quality/value sweet spot. The approach worked so well that by the 1990s customers had conferred on it the Frenchified sobriquet 'Tar-jay' which, according to one industry observer, signaled, 'It's cheap but attractive, it's common but somehow chic, it feels easy and guilt-free.' In 1995, to compete with Walmart's growing fleet of supercenters, Target began adding grocery sections to its big box stores. The case could be made that it was the moment the company began to stray from its roots. Target had no DNA in the food business. Grocery stores operate on the thinnest of margins and chic or attractive has nothing to do with marketing commodities like eggs and bread. Target was trying to be Walmart and Target at the same time. Walmart—also launched in 1962—began as a general merchandise discount store in rural Arkansas, at the time possibly the least-chic place in America. The company's motto: "Everyday Low Prices,' or 'Always.' The first Walmart Supercenter opened in 1988 and included the now-ubiquitous full-scale grocery section. Walmart, which is today still significantly owned by descendants of founder Sam Walton, did not try to be Target by, for example, up-scaling its general merchandise. Instead, it built its grocery business into a juggernaut of sales—nearly 60% of its 2025 revenue of $681 billion. Although general merchandise is where Walmart generates the bulk of its profits, the grocery aisles drive foot traffic. Examples of consumer-facing companies that have lost their way abound. As we noted last year, Starbucks founder Howard Schultz came out of retirement twice—in 2008 and again in 2022—to rescue the company after it had drifted away from its community-centric marketing and store culture. You also don't have to look far to find examples of companies that have managed to nurture a good idea or business model for the long term. In many cases, what helps sustain a brand are significant shareholders who are members of the founding family, as in the case of Walmart. Target shares are widely-held, mostly by institutional investors, and there apparently are no Dayton descendants around to influence how the company is run who keep it true to its heritage.
Yahoo
3 days ago
- Business
- Yahoo
Target Corporation (TGT) Has No Option But To Lower Prices, Says Jim Cramer
Target Corporation (NYSE:TGT) is one of the . Target Corporation (NYSE:TGT) is a frequent appearance on Cramer's morning show. He often discusses the firm in the context of other retailers such as Walmart and Costco. However, while Cramer is optimistic about Walmart and Costco's ability to withstand the inflationary impacts of President Trump's tariff, he isn't so confident about Target Corporation (NYSE:TGT). A key point on Cramer's mind is price. He has asserted multiple times that the firm has to lower its prices and bring them down to pre-COVID levels in order to be competitive. Cramer holds this opinion because Walmart and Costco are able to leverage their scale to provide customers with lower prices and attract foot traffic. Here are his latest thoughts about Target Corporation (NYSE:TGT): 'I think Target has to really start making a statement that we're going to lower prices. Now they're going to say they have lower prices. They're going to have to lower them to 2018. . . in every aisle there has to be two to three items that are 2018. That's what they have to do. In his previous comments about Target Corporation (NYSE:TGT), Cramer discussed the firm's business in detail: 'Right but Brian was very upset. Wanted to do much better. Recognizes that frankly that his prices might be too high. Has to discount more. . .look, let's just call it. It was a bad quarter. Now I know when I pressed him on these DEI issues when there was backlash, he did not say there was. And I just went back and asked about the conference call that they just did with reporters and again, he's just insisting that it's not really, it's not, just not mentioning it as being a factor. I find that, surprising. But David, the problem with Target I think, and I'm gonna come back. . .is scale. A woman purchasing groceries at a Target store, with a cart full of products. 'Go look at the prices, when I. . .would walk with Brian through a Target store, I said this is too high, this is too high, this one's too high. Where is the 2019? How about 2019 prices? I know that right now Walmart's got some 2019 prices. While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Target Corporation (TGT) Has No Option But To Lower Prices, Says Jim Cramer
Target Corporation (NYSE:TGT) is one of the . Target Corporation (NYSE:TGT) is a frequent appearance on Cramer's morning show. He often discusses the firm in the context of other retailers such as Walmart and Costco. However, while Cramer is optimistic about Walmart and Costco's ability to withstand the inflationary impacts of President Trump's tariff, he isn't so confident about Target Corporation (NYSE:TGT). A key point on Cramer's mind is price. He has asserted multiple times that the firm has to lower its prices and bring them down to pre-COVID levels in order to be competitive. Cramer holds this opinion because Walmart and Costco are able to leverage their scale to provide customers with lower prices and attract foot traffic. Here are his latest thoughts about Target Corporation (NYSE:TGT): 'I think Target has to really start making a statement that we're going to lower prices. Now they're going to say they have lower prices. They're going to have to lower them to 2018. . . in every aisle there has to be two to three items that are 2018. That's what they have to do. In his previous comments about Target Corporation (NYSE:TGT), Cramer discussed the firm's business in detail: 'Right but Brian was very upset. Wanted to do much better. Recognizes that frankly that his prices might be too high. Has to discount more. . .look, let's just call it. It was a bad quarter. Now I know when I pressed him on these DEI issues when there was backlash, he did not say there was. And I just went back and asked about the conference call that they just did with reporters and again, he's just insisting that it's not really, it's not, just not mentioning it as being a factor. I find that, surprising. But David, the problem with Target I think, and I'm gonna come back. . .is scale. A woman purchasing groceries at a Target store, with a cart full of products. 'Go look at the prices, when I. . .would walk with Brian through a Target store, I said this is too high, this is too high, this one's too high. Where is the 2019? How about 2019 prices? I know that right now Walmart's got some 2019 prices. While we acknowledge the potential of TGT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
TD Cowen Maintains a Hold on Target (TGT)
Target Corporation (NYSE:TGT) is one of the 13 Most Undervalued Retail Stocks to Buy Right Now. On June 4, TD Cowen analyst Oliver Chen maintained a Hold rating on Target Corporation (NYSE:TGT) and set a price target of $105.00. The company reported net sales of $23.8 billion in fiscal Q1 2025, down from $24.5 billion in fiscal Q1 2024. However, digital comparable sales rose 4.7%, reflecting growth of over 35% in same-day delivery supported by Target Circle 360 and continued growth in Drive Up. A woman purchasing groceries at a Target store, with a cart full of products. On June 12, Target Corporation (NYSE:TGT) also announced a quarterly dividend of $1.14 per common share, reflecting a 1.8% growth from the previous quarterly dividend of $1.12. This rise makes 2025 the 54th consecutive year of annual dividend growth in the company's history. Target Corporation (NYSE: TGT) is a retail giant operating over 2,000 discount department stores and hypermarkets across the United States and Canada. While we acknowledge the potential of TGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Sign in to access your portfolio
Yahoo
6 days ago
- Business
- Yahoo
Target Delivers 54th Consecutive Annual Dividend Hike
Target Corporation (NYSE:TGT) is one of the best stocks for a retirement stock portfolio. On June 12, the company's board of directors approved a quarterly dividend of $1.14 per share, marking a 1.8% increase from the previous dividend of $1.12 per share. A woman purchasing groceries at a Target store, with a cart full of products. This dividend will be paid on September 1, 2025, to shareholders who are on record as of the close of business on August 13, 2025. This upcoming payment will be Target's 232nd consecutive dividend since the company went public in October 1967. With this latest increase, Target Corporation (NYSE:TGT) has achieved its 54th straight year of annual dividend growth in 2025. As of June 13, TGT has a dividend yield of 4.78%. Target Corporation (NYSE:TGT) operates close to 2,000 stores along with its online platform, with a mission to bring everyday joy to families. Since 1946, the company has dedicated 5% of its profits to support communities, an amount that now adds up to millions of dollars each week. While we acknowledge the potential of TGT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure. None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
