Target Shares Drop As Company Swiftly Changes Course

Target announced Tuesday it is changing strategies. Instead of settling into the upscale department store niche, the firm is joining the price war to try to match Walmart’s bargains.

The move shocked investors, who largely thought Target would fight for higher margins by defining itself as a more upscale retailer, Bloomberg reports. Instead Target announced it is lowering prices and will accept lower margins.

Target said it plans to retain shoppers by refurbishing over 600 stores and opening 100 smaller locations in cities and on college campuses over the next two years. Investors responded quickly — the firm’s share price plummeted 14% to $57.30, marking its largest intraday fall since 2008.

The change comes after Target reported weak fourth-quarter earnings that hit the bottom end of company forecasts. Profit was $1.45/share, below the average analyst estimate of $1.51. Same-store sales were down 1.5%.

Continue reading this story with a free account

Log in or register
Sign up for more articles like this
Subscribe to Bisnow's National Newsletters
Related Stories

Proposed EPA Rule Change Could Cut Months From Timelines Of Projects Near Wetlands

Deutsche Bank Files $260M Foreclosure Suit For Broward County Mall

Rates, Rents And AI Risks: Peter Linneman's Warning For CRE

Heitman, Andover Target Self-Storage With New Investment JV

U.S. Multifamily Market Regaining Its Balance As Yearslong Supply Wave Tapers Off

Clarion Hires Prologis Executive To Lead Power Strategy

Why Data Centers Need To Embrace 'Responsible Resiliency'

The Bridge-To-Bridge Bet Is Holding Off CRE's 'Day Of Reckoning' — For Now

Augmentation, Not Replacement: How AI Platforms Are Streamlining Front Desk Teams

Lawmakers Punt On Stripping Approvals From 15 Projects In Data Center Alley

Success Of Top-Tier Malls Masks Enduring Distress In Sector's Underbelly

HUD Launches Investigation Into Wells Fargo's Efforts To Support Black Homeownership