After a full year of sales declines, it's clear American consumers are testing Target to prove its value as they continue to stretch their dollars and shop around in the face of higher interest rates and prices. Target said Wednesday its comparable store sales were down 3.7% in the most recent quarter.
At the same time, Walmart's were up 3.8%, and Amazon also saw increases. The decrease in Target's quarterly revenue, which was expected, led to a slight dip in profits, the Minneapolis-based retailer said.
"We are not yet satisfied with our topline performance, and we're far short from where we expect to operate over time," said Target CEO Brian Cornell in a call with media this week. "However, we've seen sustained improvement in multiple business drivers over the last several quarters. This reinforces our confidence that we're moving in the right direction.
" While executives said they see signs of improvement, including splurges on activewear and the latest Taylor Swift album, the earnings report came on the heels of an announcement Monday that the chain would cut prices on 5,000 items . Target this year also has reimagined its Target Circle loyalty program to make it easier for customers to take advantage of deals and launched low-price brand Dealworthy that includes items like cotton swabs and toothbrushes priced at 99 cents. The fight for consumer dollars amid stubborn inflation is fierce.
Home Depot also saw declining sales for a third quarter in a row as homeowners put of.
