Signs of trouble at Target?

rwsandiego
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Re: Signs of trouble at Target?

Post by rwsandiego » March 8th, 2020, 8:49 am

storewanderer wrote:
March 7th, 2020, 11:47 pm
TW-Upstate NY wrote:
March 5th, 2020, 12:27 pm
jamcool wrote:
March 5th, 2020, 6:58 am
Target apparently wants to build hundreds of smaller stores, primarily in urban areas and near colleges. They would be the size of a convenience store
Could that be an indirect way of trying to compete with Dollar General?
I suspect they will put their small stores where Dollar General isn't (which is a lot of places).

I am not sure what the reason for the customer to visit these small Target stores will be. What will they sell? The size of a convenience store? Maybe they serve as a pick-up point for online orders? How do they handle returns for items that they don't carry (send back to distro center or transfer to a larger store)? I guess we will see how this works. Some of those City Targets have done very well but they are decent square footage, few are c-store sized. Some are drug store sized... but that's a lot bigger than a c-store.
There's a c-store sized space in my apartment building that the building owner wants to lease to a natural/organic grocer. If a tiny Target opened in the space I think they would do very well. No, we wouldn't buy lamps and patio furniture there but residents would be there seven days a week buying small quantities of essentials (and the not-so-essentials :) )

My mother once remarked that Target is the Woolworth's of the modern age, albeit in a bigger building. Now they are opening in smaller buildings.

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Re: Signs of trouble at Target?

Post by storewanderer » March 8th, 2020, 12:37 pm

rwsandiego wrote:
March 8th, 2020, 8:49 am
storewanderer wrote:
March 7th, 2020, 11:47 pm
TW-Upstate NY wrote:
March 5th, 2020, 12:27 pm

Could that be an indirect way of trying to compete with Dollar General?
I suspect they will put their small stores where Dollar General isn't (which is a lot of places).

I am not sure what the reason for the customer to visit these small Target stores will be. What will they sell? The size of a convenience store? Maybe they serve as a pick-up point for online orders? How do they handle returns for items that they don't carry (send back to distro center or transfer to a larger store)? I guess we will see how this works. Some of those City Targets have done very well but they are decent square footage, few are c-store sized. Some are drug store sized... but that's a lot bigger than a c-store.
There's a c-store sized space in my apartment building that the building owner wants to lease to a natural/organic grocer. If a tiny Target opened in the space I think they would do very well. No, we wouldn't buy lamps and patio furniture there but residents would be there seven days a week buying small quantities of essentials (and the not-so-essentials :) )

My mother once remarked that Target is the Woolworth's of the modern age, albeit in a bigger building. Now they are opening in smaller buildings.
That is the trick. How do you in a c-store space get a mix of essentials and higher margin non-essentials that the fairly small population of store users will purchase? And sell enough of it to make running the thing worthwhile. We will see what happens.

Sounds like a drug store front end. And those don't sell much anymore unless they have a captive audience like a tourist area or big city location.

Maybe with the right merchandising and pricing it would work.

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Re: Signs of trouble at Target?

Post by mbz321 » March 8th, 2020, 6:03 pm

rwsandiego wrote:
March 8th, 2020, 8:49 am

My mother once remarked that Target is the Woolworth's of the modern age, albeit in a bigger building. Now they are opening in smaller buildings.

Except Woolworth's actually sold a very large variety of almost everything. Target's selection of everything is very limited at best, even in the full-line stores. I would gladly shop Target more but they hardly ever have what I want/need.

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Re: Signs of trouble at Target?

Post by storewanderer » March 8th, 2020, 10:36 pm

mbz321 wrote:
March 8th, 2020, 6:03 pm
rwsandiego wrote:
March 8th, 2020, 8:49 am

My mother once remarked that Target is the Woolworth's of the modern age, albeit in a bigger building. Now they are opening in smaller buildings.

Except Woolworth's actually sold a very large variety of almost everything. Target's selection of everything is very limited at best, even in the full-line stores. I would gladly shop Target more but they hardly ever have what I want/need.
Is selection at Target improving since the new CEO got there and the various new merchandising initiatives have taken place? My observation is not really... but their sales numbers would say my observation is incorrect.

I read they will start to carry Boar's Head prepackaged lunchmeats and sandwiches soon. That is great.

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Re: Signs of trouble at Target?

Post by klkla » March 26th, 2020, 7:30 am

Target says same stores sales up 20% and that they’re cutting capital expenditures.

https://www.supermarketnews.com/retail- ... c8b4a446a8

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Re: Signs of trouble at Target?

Post by arizonaguy » March 26th, 2020, 1:54 pm

klkla wrote:
March 26th, 2020, 7:30 am
Target says same stores sales up 20% and that they’re cutting capital expenditures.

https://www.supermarketnews.com/retail- ... c8b4a446a8
They need to focus on their supply chain management. Their stores look worse than any other retailer (except for maybe Sam's Club) in my area for the percentage of essentials out of stock.

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Re: Signs of trouble at Target?

Post by klkla » March 26th, 2020, 4:36 pm

arizonaguy wrote:
March 26th, 2020, 1:54 pm
They need to focus on their supply chain management. Their stores look worse than any other retailer (except for maybe Sam's Club) in my area for the percentage of essentials out of stock.
I think the CEO's comments echo what you are saying. They're going to focus on execution and that makes sense.

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Re: Signs of trouble at Target?

Post by storewanderer » March 26th, 2020, 8:25 pm

They also seem to have a nasty habit of overpromising for online orders, then holding your online order due to fulfillment issues (which I completely understand right now) then canceling it after two weeks. I don't even care if it takes three or four weeks when I've already waited two weeks, just communicate the wait and I will wait. Don't cancel it after you've already made me wait two weeks. They need to get it together.

This combined with the various cancellations I had with their in-store pick-up in November/December and I am unlikely to use their website for anything again. Wal Mart is much more reliable.

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Re: Signs of trouble at Target?

Post by Alpha8472 » Yesterday, 1:12 pm

Target is halting all new remodel projects. The current remodel projects will be finished, but new ones will be postponed.

Target is also giving employees a $2 pay increase temporarily. Perhaps too many Target employees were quitting. These employees are on the frontlines and getting exposed to the coronavirus on a daily basis.

How long can this pay increase last? What if this stay at home order lasts up to a year?

Target is also halting reusable bag sales. Does this mean only the fabric reusable tote bags or even the super thick plastic bags required in California?

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Re: Signs of trouble at Target?

Post by storewanderer » Yesterday, 8:02 pm

Alpha8472 wrote:
Yesterday, 1:12 pm
Target is halting all new remodel projects. The current remodel projects will be finished, but new ones will be postponed.

Target is also giving employees a $2 pay increase temporarily. Perhaps too many Target employees were quitting. These employees are on the frontlines and getting exposed to the coronavirus on a daily basis.

How long can this pay increase last? What if this stay at home order lasts up to a year?

Target is also halting reusable bag sales. Does this mean only the fabric reusable tote bags or even the super thick plastic bags required in California?
I noticed during the holidays and into January whenever I went into either the Reno or Sparks Target, there were a lot of people sick in the stores, both employees and customers. One visit in December to the Reno one it seemed like literally every employee in the place was sick from the sales floor up to the checkouts. I noticed it again in February when I went to the Sparks Target for 90% off Valentine's Clearance salvage stuff. Not sure if it was just bad luck when I was in the stores or what but I never notice so many people sick in other busy stores I was going into at the same time (Smiths, WinCo, Wal Mart, etc.) as I did in the Target Stores.

Target has suspended use of reusable bags and suspended all bag fees. I'm not sure what bags they are giving out but whatever bags they are giving out, there is no charge for the bags. They know it is a serious sanitation issue to handle reusable bags.

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