By Sandy Skrovan, U.S. Research Director, Planet Retail
On Target's first quarter results, Sandy Skrovan, U.S. Research Director at Planet Retail, comments:
"Don't expect a lot from Target this quarter. The data breach and subsequent fallout - including leadership turnover and ongoing shopper trust issues - weigh like an albatross around the retailer's neck. Besides dealing with internal issues, some broader retail metrics don't bode well for Target either, suggesting another disappointing quarter is on the cards."
"Target also has its work cut out to refocus attention on some basic retail fundamentals - e.g. inventory management, merchandise excitement, and good old friendly customer service. Out-of-stocks are becoming increasingly problematic. Some aisles beyond grocery even appear in bad shape.
"It's taken its eye off the ball - namely,i.e. core US operations - by taking on too many new ventures all at once: Canada, urban CityTarget, online. Two years ago, Planet Retail surmised that while this combination of future growth possibilities could be quite powerful, we were concerned Target was biting off more than it could chew. I wish Target had proved us wrong, but sadly it's not the case."
Sandy Skrovan can be reached at firstname.lastname@example.org.